This document discusses provisions around migrating existing taxpayers to the GST regime and carrying forward credits from prior tax systems. It states that persons registered under existing laws and with a PAN will be issued a provisional GST registration certificate. It also allows the carrying forward of credits for taxes like central excise duty, VAT, and service tax held in electronic ledgers to the GST system. It provides conditions for claiming credits on stocks held and specifies eligible credits that can be carried forward. It also discusses provisions for availing unutilized capital goods credits under GST.

1. TRANSITIONAL PROVISIONS
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2. Migration of existing tax payers -
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On and from
the AD
every person
registered under
any of the existing
laws and having a
valid PAN
subject to such
conditions and in
such form and
manner as may
be prescribed
PRC shall be
liable to be
cancelled if the
conditions
prescribed are not
complied with
The final certificate of
registration shall be
granted in such form and
manner and subject to
such conditions as may be
prescribed
shall be issued a
certificate of
registration on
provisional basis
(PRC)

3. Migration of existing tax payers –
Cancellation of PRC
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A person who
got PRC and
not liable to be
registered
under sec 22 or
sec 24
May make an
application for
cancellation of
PRC
PRC shall be
cancelled and it
shall be deemed
that the same
have not been
issued

4. Migration of existing tax payers 4
Every person,
other than a
person
deducting tax at
source or an
Input Service
Distributor (ISD),
registered under
an existing law
and having a
PAN
shall enroll on
the Common
Portal by
validating his e-
mail address
and mobile
number
Upon enrolment under clause
(a), the said person shall be
granted registration on a
provisional basis and a
certificate of registration in
FORM GST REG-06,
incorporating the GSTIN therein,
shall be made available to him
on the Common Portal
 Provided that a taxable person who has been granted multiple registrations under the
existing law on the basis of a single PAN shall be granted only one provisional
registration under the GST Act

5. PRC
cancelled
have either not been
furnished or found to be
incorrect or incomplete
RC Granted
are found, by the proper
officer, to be correct and
complete
Migration of existing tax payers – 5
Every person who has
been granted a provisional
registration shall submit
an application
electronically in FORM
GST REG– 24, duly signed,
along with the information
and documents specified
in the said application, on
the Common Portal
particulars or
information
specified,

6. A registered person, other than a person opting to pay tax under
section 10
shall be entitled to take, in his electronic credit ledger
The amount of CENVAT / VAT OR ENTRY TAX credit carried
forward in the return relating to the period ending with the day
immediately preceding the appointed day, furnished by him
under the existing law
Carry forward of credit 6

7. CENVAT
CREDIT
Central
Excise
duty
Service
Tax
Education
Cess
Secondary
Higher
Education
Cess
CVD
SAD
7Carry forward of credit : What is CENVAT

8. Particulars CARRY FOWARD TO
Central Excise duty ECL – CGST
Service Tax ECL – CGST
Education Cess ECL – CGST
Secondary Higher Education Cess ECL – CGST
Counter Value Duty ECL – CGST
Special Additional Duty ECL – CGST
Swachh Bharath Cess / Krishi Kalyan Cess NOT ALLOWED
Input Tax Credit under VAT ECL – SGST
CST NOT ALLOWED
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9. where the said amount
of credit relates to
goods manufactured
and cleared under such
exemption notifications
as are notified by the
Government
The registered person shall not be allowed to take credit in the following
circumstances, namely:—
Carry forward of credit
.
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where the said
amount of
credit is not
admissible as
input tax
credit under
this Act
OR
where he has not
furnished all the
returns required
under the existing
law for the period
of six months
immediately
preceding the
appointed date
OR
Last return under the existing law should be filed within a period of
90 days from the appointed day

10.  Service tax paid on RCM for the last month – how
to take credit?
 VAT paid on unregistered purchase during the last
month but not utilized during that month
 Last Return to be filed with maximum care and
ensure that all eligible credits are taken
10Carry forward of credit - Possible Issues

11. A registered
person
who was not liable to
be registered under
the existing law
who was engaged in
the manufacture of
exempted goods or
provision of
exempted services
a first stage dealer or a
second stage Dealer or a
registered importer or
a depot of a manufacturer
shall be
entitled to
take, in his
electronic
credit
ledger
credit of
eligible
duties in
respect of
inputs held in stock and
inputs
contained in semi-
finished or finished
goods held in stock on
the appointed day
(Subject to certain conditions)
Generally Eligible Duties are:
• Excise Duty
• Counter value Duty (CVD)
• Special Additional Duty (SAD)
• Service Tax
11Carry forward of CENVAT credit

12. Conditions for claiming credit on stock 12
 The goods should be used for making taxable supplies
 The assessee should be eligible to take input under this Act
 The person should have the supporting documents such as Invoice to
support the payment of Duty under existing law ( eg: Central Excise,
State VAT etc)
 Such supporting documents should not be earlier than 12 months from
appointing date
 the supplier of services is not eligible for any abatement under this Act

13. Credit of Eligible Duties in Stock where
there is no invoice evidencing payment of duty 13
• A person other than Manufacturer or service provider.
• Subject to such conditions, Limitations as may be prescribed.
• person shall pass on the benefit of such credit by way of reduced prices to the
purchaser.
• allowed to take credit at such rate as prescribed below

14. • Credit Shall be availed on the tax applicable on supply of such goods.**
• Such goods shall not be a NIL Rated or exempted item under Excise Tariff Act.
• Document for procurement of such goods is necessary.
• The goods should be easily identifiable.
• The scheme shall be available for six months from the appointed date
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Credit of Eligible Duties in Stock where
there is no invoice evidencing payment of duty

15. ** Credit available on the tax applicable on supply of such
goods.
 Such credit shall be allowed @60% on such goods which attract
CGST @9% or more, and
 @40% for other goods of the CGST applicable on supply of such
goods after the appointed date and
 shall be credited after the central tax payable on such supply has
been paid:
 Provided that where IGST is paid on such goods, the amount of
credit shall be allowed @30% and @20% respectively of the said
tax
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16. ** Credit available on the tax applicable on supply of such
goods.
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 A registered person, holding stock of goods which have suffered tax at the first
point of their sale in the State and the subsequent sales of which are not subject
to tax in the State availing credit
 shall be allowed to avail input tax credit on goods held in stock on the appointed
day in respect of which he is not in possession of any document evidencing
payment of value added tax.
 Such credit shall be allowed @60% on such goods which attract State tax @9%
or more and
 @40% for other goods of the State tax applicable on supply of such goods
after the appointed date
 Provided that where integrated tax is paid on such goods, the amount of credit
shall be allowed @30% and @20% respectively of the said tax

17. Possible Issues
 No credit on stock for works contractors other than builders
who claim abatement under notification no.26/2012-ST
 No credit of Service tax and CST in relation to stock
 No service tax credit to Traders
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18. 18Unavailed credit of Capital Goods
A registered person, other than a person opting to pay tax
under section 10
shall be entitled to take, in his electronic credit ledger
credit of the unavailed CENVAT credit in respect of capital
goods
not carried forward in a return, furnished under the existing law by
him, for the period ending with the day immediately preceding the
appointed day
Provided that the registered person shall not be allowed to take credit unless the said credit was
admissible as CENVAT credit under the existing law and is also admissible as input tax credit
under this Act

19. Unavailed credit of Capital Goods 19
“unavailed CENVAT credit” means
aggregate amount of CENVAT
credit to which the taxable
person was entitled in respect
of capital goods under the
existing law
Minus
the amount of CENVAT credit
already availed in respect of
capital goods by the taxable
person under the existing law

20. THANK YOU
Shivaprasad Rao
Mob : 999 599 1059
E-mail : shvprsd57@gmail.com
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