How to File TRAN-2 on the GST Portal Using the Offline Tool?

Dealers not registered under the previous regime may need to register under GST, as GST has a lower turnover limit for registration. These unregistered dealers may have a stock of inputs, semi-finished goods or finished goods as on the 1st of July, 2017, when GST came into force. Even though they were not registered, these taxpayers would have paid tax under the previous regime on their purchases.

Hence, TRAN-2 is to be filed by those dealers who do not have bills/invoices for the tax paid on their inputs. A taxpayer will need to file Form TRAN-1 and GSTR-3B for the relevant month before filing form TRAN- 2. This form needs to be submitted for each month in which such stock is sold up to December 2017.

What are the prerequisites for downloading the TRAN-2 offline tool?

A taxpayer is required to have the following on his device:

• Windows 7 and above
• MS Excel 2007 and above

Steps to download and install the TRAN-2 offline tool

There are two ways to download the TRAN-2 offline tool. You can either log in to your account on the GST portal or download the tool without logging in. Both processes have been detailed below:

Pre-login download

Step 1: Visit the GST portal. The GST home page will be displayed.

Step 2: Go the Downloads > Offline Tools > TRAN-2 Offline Tools.

Step 3: Click on the ‘Download’ links given beside each of the following two sections:

‘TRAN-2 Inputs held on stock (central) Excel template’: This template covers section 4 of the form TRAN-2. 

‘TRAN-2 Credit on state tax on the stock Excel template’: This template covers section 5 of the form TRAN-2 applicable to those states that had a single point VAT system out of section 4. 

After that, click on the ‘Proceed’ button and the file starts downloading.

Step 4: Browse and select the location where you would like to save the files which have been downloaded.

Post-login download

Step 1: Log in to GST portal. The GST home page will be displayed. 

Step 2: Go to Services > Returns > Transition Forms. 

Click on the ‘TRAN-2’ tab.

Step 3: Select the relevant year and month from the drop-down menu and click on ‘Search’.

Step 4: Click on the tile named ‘4 – Details of input held on stock on appointment date which he is not in possession of any invoice/document evidencing payment of tax carried forward to Electronic Credit ledger’ will be displayed. 

Step 5: An ‘Important Note’ will be displayed. The 2nd point has a link to download the tool. Select ‘Click Here’. 

Similarly, you can download the excel template for ‘Tran – 2 Credit on State Tax on the stock’ post login to the GST portal.

Installing the tool

Step 1: Once the TRAN-2 offline tool has been downloaded, you will need to unzip and extract the files from the downloaded zipped folder. The zipped folder will consist of an excel file. Double-click on it.

Step 2: Once the excel sheet opens, click on ‘Enable Content’ in the excel sheet.

Steps to prepare TRAN-2 using the offline tool

The TRAN-2 offline tool has two downloadable templates, as explained above. If you have a large number of records in sections 4 and 5 of TRAN-2, you can use the excel templates for filling in the data and generate the JSON file for upload.  Here are the steps to fill-in data for the ‘TRAN-2 Inputs held on stock (central) Excel template’:

Step 1: Open the ‘TRAN-2 Inputs held on stock (central) Excel template’ which has been downloaded. 

Navigate to the worksheet ‘GST_TRANS2_Central’.

Step 2: Enter the GSTIN in the GSTIN field.

Step 3: Enter details in the other relevant columns of the excel tool. Important points to follow are-

• All fields marked with a red asterisk ‘*’ are mandatory fields, which should be compulsorily entered.  

• Enter the relevant tax period.  

• The HSN code should be numeric, and cannot be more than eight digits. 

• Either the HSN codes or the descriptions should be filled-in.  

• The units of measure can be selected from the drop-down list under UQC.

• The opening stock quantity, outward supplies quantity, value, central tax (CGST), integrated tax (IGST), ITC allowed and closing quantity should all be numeric values.  

• The closing balance quantity, whether entered or not, will automatically be set to the opening stock quantity (minus) the outward supply quantity. 

• The ITC allowed should not exceed 60% of the central tax (CGST).  

• The ITC allowed should not exceed 30% of the integrated tax (IGST).

• Under ‘Action’, select ‘Add’ to insert a new record or edit an already entered record into the GST portal. 

• Under ‘Action’, select ‘Delete’ to delete an already existing record. 

• If you need to insert a new row in between two rows, then you first need to select all the rows below the row you wish to add a new row. You then need to cut and paste the selected rows one row below the row you wish to insert new data in.

Step 4: Once all the details have been entered, click on the ‘Validate & Calculate Sheet’ button to validate the worksheet. 

Note: The ‘Closing Balance’ = QTY (Opening stock for the Tax Period) – QTY (Outward supply made)’ is calculated once you click on the ‘Validate & Calculate’ button.

Step 5: In the case of successful validation, a message will be displayed with the count of records to be added and deleted on the GST portal. Click on the ‘OK’ button.

Note: If you wish to delete a row with an error, select the entire row and press on the ‘Delete’ key on your keyboard. You then need to select all the rows which are below the deleted row and cut and paste them on the deleted row.

Step 6: In the case of unsuccessful validation, the errors will be displayed in the ‘Error’ column. You need to rectify all errors, and once again click on the ‘Validate & Calculate Sheet’ button to validate the worksheet.

The error column should remain blank, showing that the row is now validated.

Similarly, you can fill-in data and upload JSON for ‘TRAN-2 Credit on state tax on the stock Excel template’.

Steps to generate the JSON file for upload

Step 1: Click on the ‘Create File to Upload’ button on the excel template to generate the JSON file for upload on the GST portal.

Step 2: Navigate to the folder in which you want to save the JSON file. Enter the file name and click on the ‘Save’ button.

Step 3: A confirmation message will be displayed saying that the JSON file is created. Click on the ‘OK’ button.

Steps to upload the JSON file

Step 1: Log in to the GST portal. The GST home page will be displayed. 

Step 2: Go to Services > Returns > Transition Forms.

Click on the ‘TRAN-2’ tab.

Step 3: Select the relevant year and month from the drop-down menu and click on ‘Search’.

Step 4: Click on the tile named ‘4 – Details of Input held on stock on appointment date in respect of which he is not in possession of any invoice/document evidencing payment of tax carried forward to Electronic Credit ledger’ will be displayed.

Step 5: Click on the ‘Choose File’ button.

Step 6: Browse and navigate to the JSON file, which needs to be uploaded from your device. Click on ‘Open’.

Step 7: The uploaded JSON file will get validated and processed. In case of validation failure while processing, the errors if any, can be downloaded from the GST portal by clicking on the link to download the error CSV file.

Step 8: Once downloaded, open the file, the errors will be displayed.

Rectify the mistakes on the JSON file, and upload the same again on the GST portal. If there are no errors, a message will be displayed “All records in the JSON file is saved in our database successfully.”

Similarly, data can be uploaded for ‘Tran-2 Credit on State Tax on the stock’.

Step 9: Once the data has been uploaded, click on ‘Preview’ to download the PDF summary and review the draft for correctness, before submitting the form.

After review, click on the ‘Submit’ button to freeze the form. 

A warning message will be displayed. Click on ‘Proceed’ to continue. The status of the TRAN-2 form will change to ‘Submitted’.

Note: Once submitted, there is no option to modify or revise the form.

Step 10: Click on either ‘File with DSC’ or ‘File with EVC’, as per your convenience, and select the authorised signatory to sign/verify the form.

After a successful filing, a message will be displayed; the status will change to ‘Filed’. An email with the ARN number will be sent to your registered email ID.

Frequently Asked Questions on the TRAN-2 offline tool

Is the TRAN-2 offline tool mobile compatible?

Currently, the TRAN-1 offline tool is not available for mobile phones and can be only used on desktops.

Can stocks, that are not supported by evidence of duty and taxes paid, be declared while filing the July month TRAN-2, if the same has not been reported in TRAN-1?

No, you will not be able to claim credit in TRAN-2 if you have not declared that stock in TRAN 1.