GST Tran 1 Form and It's Revision - H&R Block | Blog
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TRAN 1 GST and It’s Revision

Blog on Revised Form Tran 1

What is Form TRAN 1?

After the roll-out of GST, several taxpayers were worried about the credit of taxes for which they had not claimed credit. This issue was anticipated by the government and a solution was offered through the introduction of form GST TRAN-1. By filing this form, taxpayers can claim the credit of such tax which was paid on inputs before July 1, 2017. So, they can effectively carry forward their credit in GST regime.


People eligible to file the form GST TRAN-1

The following types of people are allowed to file TRAN-1:

  • Any person who was registered under the previous indirect tax system and wants to carry forward his credit in GST.
  • Any person who was unregistered under pre-GST regime but wants to take credit of tax paid on his stock.
  • Any Principal who had sent the goods to job worker or agent and it was still with the job worker or agent on the appointed date.


Details to be mentioned in TRAN-1

When a Principal files this form, he/she must include the details regarding goods held by the job worker or agent in TRAN 1. Vice-versa, the job worker also has to file the details of the stock held by him on behalf of the principal. Details regarding goods sent on approval or return as on the appointed date (i.e. July 2017) should also be shown in TRAN 1 by the taxpayer if he has any of them in the account. Those taxpayers who have registered themselves under GST as a composition dealer are not eligible to file TRAN 1. The amount of Credit specified in Form GST TRAN 1 will be automatically credited to the electronic ledger of the applicant and thereafter can be utilised for paying taxpayer’s output taxes. If a taxpayer is registered under state tax laws then credit will be given under SGST ledger account. Similarly, in case of Central Tax laws (Service tax or Excise), credit will be credited to CGST ledger account. If credit is wrongly taken, it can be recovered by the tax administration with interest. Therefore, when filing Form TRAN 1, the taxpayer should make sure that the credit is eligible under GST.


Due date for filing TRAN-1

The last date of filing form TRAN 1 is December 27th,  2017.


Issues faced by the taxpayers and revision of TRAN-1

Various taxpayers are facing problems due to the erroneous filing of TRAN 1 or due to failure in taking some transition credit in their return. CBEC has also observed that some of the taxpayers have taken credit which is not according to the rules or commensurate with the law. To help these taxpayers and keeping with the philosophy of voluntary compliance, the government has provided the facility of revision of Form TRAN 1. Further, the ministry advised the taxpayers to ensure that only correct and bonafide credit is availed in transition, failing which the tax administration would be constrained to initiate audit and enforcement against the identified units. Now taxpayers have an excellent opportunity to take eligible and correct Input Tax credit by revising Form TRAN-1 on the GST Portal by December 27th, 2017, if they have erroneously filed with wrong credit.

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CA Ankita Mathur
CA Ankita Mathur
Ankita, a Big 4 alumna, is a tax expert at H&R Block (India) with vast experience in managing GST-related business services. An avid traveller, Ankita is a regular contributor to the CAclubindia and loves helping people understand about GST and helping companies be GST compliant.