Looking for a business loan
Thank you for your interest, our team will get back to you shortly
Thank you for your response
Thank you for your response
Our representative will get in touch with you shortly.
Save upto 7% in taxes
Claim 100% ITC and save ~4% GST
3x faster experience
Save 2 man days every GSTIN month
Easy to connect
Connect with 100s of ERP's, import data error-free
What happens to the CENVAT Credit when a dealer who was not registered under Excise Act receives goods cleared before 1st July 2017? Learn more...
What happens to the CENVAT Credit when a dealer who was not registered under Excise Act receives goods cleared before 1st July 2017? Under the GST regime, the manufacturer is required to issue a Credit Transfer Document in such cases. Let us learn about these documents in detail.
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 before 1st July. The goods must be cleared to a person not registered under Central Excise Act but is a registered trader under GST.
The manufacturer should issue a CTD within 30 days from 1st July, 2017, i.e before 30th July, 2017. Also, the manufacturer has to attach the relevant invoices with the Credit Transfer Document.
The manufacturer will be jointly and severally liable along with the dealer for excess credit availed by the dealer along with interest and penalty under CENVAT Credit Rules 2004.
Document | Due Date for filing | Who should issue the document |
Table 1 of TRANS 3 | 60 days from 1st July 2017 | Manufacturer issuing the CTD |
Table 2 of TRANS 3 | 60 days from 1st July 2017 | Dealer availing the credit based on the CTD |
TRANS 3A | No due date | Manufacturer issuing the CTD. Records have to be made available to the appropriate Central Excise Officer on demand |
TRANS 3B | No due date | Dealer availing the credit based on the CTD. Records have to be made available to the appropriate Central Excise Officer on demand |
Below you will find the formats of the different forms Trans 3, 3A and 3B that are important both for the manufacturer issuing a CTD, or the dealer availing the credit via CTD:
Note: These rules are draft rules and final rules have not yet been issued by the CBEC.