GST TRAN-3: What is TRAN-3 and How to File it?

Latest Update!

16th May 2020 
The CBIC has notified the 18th of May, 2020, as the date from which the provisions of section 128 of the Finance Act, 2020, will come into force. (Note: Section 128 of the Finance Act, 2020, gives effect to the amended section 140 of the Central Goods and Services Tax Act, 2017, which defines the time limit for claiming transitional input tax credit under the Act.)

Any manufacturer or dealer who has received Credit Transfer Document (CTD) has to file TRAN-3 to carry forward the taxes paid to the GST regime.In this article we will cover the following:

What is TRAN-3?

TRAN-3 is to be filed to avail the transitional credit of ITC by a registered taxpayer under :

• registered under Central Excise Act 1944
• has issued CTD or is making use of CTD

A Credit Transfer Document (CTD) is a form issued by a manufacturer of goods, as an evidence of payment of Excise Duty on goods manufactured and cleared in the pre-GST regime. The goods must be cleared to a person not registered under Central Excise Act but is a registered trader under GST.

Who should file TRAN-3?

TRAN-3 should  be filed by the following:

• A Manufacturer who has issued CTD to Dealers
• A Dealer who has received CTDs issued by Manufacturers

When is TRAN-3 due?

The due date for TRAN-3 specified in the act is 60 days from 1st July 2017. But the filing of TRAN-3 is still active on the GST Portal. Note: There is no notification regarding the extension of due date for TRAN-3.

How to file TRAN-3 on GST Portal?

Here is a step by step guide to file TRAN -3 on GST Portal:

Step 1 – Login the GST Portal.  

Step 2 – Navigate to ‘Services’ > ‘Returns’ > ‘Transition Forms’ .  

Step 3 – In the Transition Forms page, click the TRAN – 3 tab.  

Step 4 – Based on whether you are a manufacturer or a dealer click on the respective tile.  

Step 5 – In the ‘To be filled by manufacturer issuing CTDs’ tile, click the ‘ADD DETAILS’ button.  

Step 6 -Enter the following details-

• GSTIN
• Total No. of CTD issued
• No. of invoices, Total quantity and Total Value for which CTDs have been issued
• Excise paid on the goods.

Click on ‘SAVE’ button.  

Step 7 – If you are a dealer and you want to claim ITC based on CTDs issued by the manufacturer, click the ‘To be filled by dealer availing Credit on CTD’ tile.  

Step 8 – Provide the details as required on this page to carry forward the credit received by you as a dealer. Click on ‘SAVE’ once all the details have been entered.  

Step 9 – Click on the ‘SUBMIT’ button to file TRAN-3. Note: You cannot modify TRAN-3 which has been submitted. Also, electronic credit ledger is updated based on information filed in TRAN-3.  

Step 10 – Click the ‘PROCEED’ button in the Warning box to continue. The status of the Form will be changed to ‘Submitted’ and a success message will be displayed.  

Step 11– Authenticate the Form by DSC or EVC. Click the ‘FILE WITH DSC’ button to sign the form using DSC. Alternatively, click the ‘FILE WITH EVC; button to validate using EVC.   Once TRAN-3 is filed the status will be changed to ‘Filed’. You can now track the status of the Form by going to  ‘Services’ > ‘Returns’ > ‘Track Return Status’.