An attempt has been made to discuss practical side / actionable items for smooth transition during GST regime.

1. Practical Aspects
GST Transition

2. Agenda
• Bird’s eye
view of Act
and rules
1
• Enrollment
Actions
2
• Stock
transition
groundwork
3
• Indirect tax
Returns and
Central
Statutory
forms
4
• Dealing with
pre-GST goods
return in GST
regime
5
• Book keeping
activities and
its role in
transition
6
• Other
preparatory
activities
7
• Preparation of
Form TRAN-1
and TRAN-2
8

3. Brief overview of
Act and rules
Slide No. 5

4. Act and rules
Section of Central / Delhi GST Act Corresponding
Central Rule
RTP Actionable Form
139 – Migration of existing
registrations
24 REG 26 & 29
140 – Migration of ITC from pre-GST
to post-GST
117 TRAN-1 and 2
141 – Job workers related migration
matters
119 TRAN-1
142 – Other Transition issues
including transactions having
connection with pre-GST regime
118 and 120 TRAN-1
Slide No. 6

5. Enrollment Actions
Slide No. 7

6. Procedure of migration
1. Obtain temporary user id and password
• Either from state authorities or Central authorities
2. Create Enrollment application with requisite information and
documents
3. Government to issue provisional GSTIN on
appointed date, valid for 3 months.
4. File REG-26 to convert prov. regn to Final (within 3
months) or REG-29 for cancellation of prov. GSTIN
(with in 30 days)
5. Provisional registration either converted to FINAL registration
Or Cancelled based on REG-26/29

7. CBEC Ticker and Tweet
https://twitter.com/askGST_GoI/status/881114983198740480?s=08
Slide No. 9

8. Alternate migration procedure
1. Create
user id at
your end
(without
waiting for
PID)
2. Create registration application
in form REG-01 with requisite
information and documents
•Make sure all existing registration
numbers are duly mentioned in table
15 of form to take benefit of ITC
migration
3. File REG-26
4. FINAL
registration

9. Stock transition
groundwork
Slide No. 11

11. Stock Ground Work
• Physical stock taking as on June 30
• Physical stock taking / written
confirmations from Job workers / Agent.
• Physical stock to tally with books (both
31/03/2017 and 30/06/2017).
• Valuation of stock, especially inputs
contained in semi-finished and finished
stock (for manufacturers). Preferably a
valuation certificate from Cost
Accountant.
• One to one identification of invoices / BoE
/ CTD vis-à-vis inputs (1 year)
• Goods in transit are inward before 30th July

12. Return and Central
Statutory forms
actionable items
Slide No. 14

13. Indirect tax returns
• File your all pending VAT / Service Tax
/ Excise Returns with due taxes.
• Even if one return since Jan 2017 is
pending, entire ITC shall not be
migrated.
• Before filing return for Q1 ending
June 30, 2017, make sure to revise all
previous returns to arrive at correct
b/f ITC for April 1, 2017.
• Credits shall be allowed only on the
basis of original return for Q1. Any
revision in return later on will have to
dealt by payment or refund.

14. Central Statutory Forms
• Make a list of all Central Statutory
forms (C/H/I/E-1/E-2) from April 1,
2015 till June 30, 2017
• List A: Forms received
• List B: Forms pending or not received
Just like we do for DVAT form R-9
• Chase customers strictly and
obtain as many forms as possible
before September 30, 2017
• Less forms, less credit

15. Dealing with pre-GST
goods returned in
GST regime
Slide No. 17

16. Dealing with pre-GST goods
returned in GST regime
•Deemed Supply for
registered buyer returning
goods. He will charge GST.
•No VAT credit reversal for
registered buyer.
•GST ITC to be claimed by
original registered seller
• Deemed Supply for
registered buyer
returning goods. He will
charge GST
• GST becomes cost for
unregistered supplier
• No action by consumer
• RTP seller to pay tax u/s
9(4) and claim ITC*
• Seller to claim refund for
pre-GST taxes
• No action for consumer
• No action for
unregistered seller
U2C
Sales
return
B2C
Sales
return
B2B
Sales
return
U2B
sales
return
*Two school of thoughts

17. Account books
Slide No. 20

18. Book keeping activities
• Reconciliation of creditors/debtors to ensure
that all transactions are recorded in books
of accounts of both the parties. Make sure
books till 30th June 2017 are closed.
• Make requisite changes in accounting
system to take care of accounting for
advances, CGST, IGST, SGST, adjustment of
advances.
• Develop SOPs to reconcile books with GST
returns on monthly basis.
• GST and accounting will go hand in hand.
• Dry run /simulate GSTR-1 / 2 / 3.

19. Book keeping activities
• List of Reversed Credit under Rule 4(7)-
where credit had been reversed due to
non-payment of value of service and
service tax within 3 months, in order to
avail the credit.
• Such payment must be made by
30.09.2017 or else the credit shall lapse
forever.

20. Others
Slide No. 23

21. Others
• Inform/Obtain to/your GSTIN/ARN to/from
all suppliers of goods and services as it
needs to be mentioned in tax invoice to
be issued from 01.07.2017 in order to
claim the credit of tax.
• Obtain immediately new registrations
wherever required. GSTIN is being allotted
online in 3-4 working days (post
validation).
• Prepare chart of HSN codes applicable
to your line of activity.
• Apply for SAD refund, if eligible.
• Make sure PRC / FRC is displayed at the
entrance of each fixed establishment.

22. Questions
Slide No. 25

23. Thanks for your
time!

24. Contact us
Intellia Advisors, LLP
211-212, Amba Towers
Sector 9, Rohini
Delhi 110085
Ph: +91-11-4563 8630
Mpb: +91-9810 575 565
Email: gst@intellia.in
Slide No. 27