The document provides instructions for filling out Form TRAN-1 in order to claim input tax credit under the GST regime for taxes paid under earlier laws. It describes the different "tiles" or sections of the form that must be completed, including declaring credit carried forward from previous returns, details of inputs held in stock, capital goods, credit received by input service distributors, and more. Instructions are provided for verifying the claimed credits against documents and ensuring compliance with conditions for credit carry-forward under GST law.

2. VERIFICATION OF TRAN-1
TRAN-1:
Registered or unregistered person under any pre-GST regime to file TRAN-1
Form to claim credit of tax paid under the earlier law i.e Central Excise, Service
Tax, VAT and New Registrant (for ITC on stock under GST).
TRAN -2:
Unregistered person under pre-GST regime in any Acts
Registered only under VAT and sought for ITC on stock for Central Tax
Not in a possession of any document evidencing payment of Tax
To claim ITC of tax paid under the earlier law

3. TILES OF TRAN-1

4. TILES OF TRAN-1
5. Declare the details of the amount of tax credit carried forward in the returns filed
under relevant earlier laws and admissible as GST credits, by clicking on the tile
5(a), 5(b), 5(c).

5. TILES OF TRAN-1

6. VERIFICATION OF TRAN-1

7. TILES OF TRAN-1

8. TILES OF TRAN-1

9. TILES OF TRAN-1
7. Details of the inputs held in stock by clicking on the tile 7(a) 7(b) 7(d) and
Furnishing the required information to avail the credit of eligible taxes and duties
paid under earlier laws and for which credit is allowable under GST regime.

10. TILES OF TRAN-1

11. TILES OF TRAN-1

12. TILES OF TRAN-1
8. Declare the details of tax paid under earlier laws and credit admissible on
inputs (goods), And services received in the time period of 30 days (60 days in a
case of extension) of appointed day in table 7(c)

13. TILES OF TRAN-1
9. Announce details of transfer/distribution of Central tax credit claimed in Table 5 (a)
on account of CENVAT credit carried forward in last return for registered person
centralised registration under service tax by clicking on the tile 8.

14. TILES OF TRAN-1
10. Declare details of goods sent to job worker and held in his stock on behalf of the
principal (by both job worker and the principal) by clicking on the tile 9(a) & 9(b).

15. TILES OF TRAN-1
11. Declaration of details ( by both the agents and the principals) of goods were held
in stock by agents on behalf of the principle and its admissible ITC agents by
clicking on the tile 10(a), 10(b).

16. TILES OF TRAN-1
12. Declare details of transition credit availed on transaction subject to both service
tax and VAT on which tax has been paid under earlier laws and are also taxable
under GST by clicking on the tile 11.

17. CENVAT/VAT CREDIT
CARRIED FORWARD
CREDIT WILL BE
AVAILABLE IN GST
Subject to the following Conditions :
The amount has to be admissible as ITC under the GST act
All RETURNS has been filed for 6 months period immediately preceding the appointed date
amount of credit not related to goods manufactured and cleared under such exemption
notifications as are notified by the Government.(CGST)
17

18. 5(a) Balance cenvat credit carried forward in the said last return
(Refer Section 140(1) and (4) of the CGST Act)
 Examine the trend of credit availment for last one year, any abnormal increase
say beyond 25% may be probed.
 Examine the receipt of inputs in the factory on the basis of GRN and other
relevant documents
 While verifying the actual receipt of inputs along with duty paying documents,
check the input output norms for the goods manufactured and generation of
Waste and Scrap
 Examine stock statement, if filed, with Banks and financial institutions for
availing overdraft facility and other credits

19. 5(a) Balance cenvat credit carried forward in the said last return
(Refer Section 140(1) and (4) of the CGST Act)
 Examine the payment particulars of said purchase of inputs, if the amount is
shown outstanding for more than 180 days, the credit is liable to be reversed
 The Credit is eligible for specified duties mentioned in the Act. However, credit
balance f Education CESS & HS Education Cess, Krishi Kalyan CESS, Swatch
Bharat CESS are not specified there and are not admissible credit under GST
 Examine whether the credit is availed on the basis of prescribed documents
 Examine the admissibility of the credit availed for the last one year before
01.07.2017

20. 5(a) Balance cenvat credit carried forward in the said last return
(Refer Section 140(1) and (4) of the CGST Act)
TO BE NOTED:-
 The credit accumulated on account of manufacture of exempted goods are
required to be reversed and not allowed to be carried forward.
 Rule 6(3A)(b) of the CENVAT Credit Rules provides for provisional reversal of
credit, attributable on exempted goods and/ or exempted services on monthly basis.
Audit officers are required to check the final reversal of credit for entire quarter April
to June, 2017, as per calculation provided under Rule 6(3A)(c) of the CENVAT Credit
Rules before transferring the outstanding credit shown in ER-1 and ST-3 Returns.

21. UNAVAILED CENVAT/VAT
CREDIT ON CAPITAL GOODS
NOT CARRIED FORWARD CREDIT WILL BE
AVAILABLE IN GST
Subject to the following Conditions :
The amount has to be admissible as ITC under the GST Act
UNAVAILED CREDIT = CAPITAL GOODS CREDIT – ALREADY AVAILED CREDIT
Application electronically in FORM GST TRAN 1 (common portal)
21

22. 6(a) Total eligible Cenvat credit (on Capital Goods) under existing law
(Refer Section 140(2) of the CGST Act)
 Examine whether it is admissible as CENVAT Credit under earlier law and input
tax credit under CGST
 Examine the receipt and availability of capital goods since the Capital goods
credit is allowed in respect of Capital Goods available only in the factory. Thus, the
officer has to verify the receipt and availability of Capital Goods

23. CREDIT OF INPUTS HELD IN STOCKS/IN SEMI-FINISHED GOODS/FINISHED GOODS
(S-140(3))
REGISTERED PERSON ,who
was not liable to registered
under existing law
WHOLLY EXEMPTED
GOODS/SERVICES
TAXABLE & EXEMPTED
GOODS/SERVICES
WORKS CONTRACT SERVICE
& AVAILING NOTIF 26/2012-
ST
REGISTERED
IMPORTER
FIRST/SECOND STAGE
DEALER
23

24. Earlier Exempted but Taxable under
GST
Earlier in Composition but under
Normal scheme in GST
PROVIDED
SHALL BE ENTITLED for Credit of eligible duties/taxes/VAT on
Inputs held in stock on the
appointed day
 Inputs contained in semi-finished /finished goods held in stock
on the appointed day
24

25.  such inputs or goods are used or intended to be used for making taxable
supplies under this Act
 the said registered person is eligible for input tax credit on such inputs under this Act;
 the said registered person is in possession of invoice or other prescribed documents evidencing
payment of duty under the existing law in respect of such inputs;
 such invoices or other prescribed documents were issued not earlier than twelve months
immediately preceding the appointed day; and
 the supplier of services is not eligible for any abatement under this Act:
• Not wholly exempt/nil + document for procurement of goods
Other than manufacturer & Service Provider, can avail 60% or 40% credit, if there is no document evidencing
payment
25

26. 7(a) Details of inputs held in stock or inputs contained in semi-finished or
finished goods held in stock(Value) (Refer Section 140(3) of the CGST Act)
 Examine the eligible input credit in respect of inputs held in stock and inputs contained in
semi-finished or finished goods held in stock
 Examine such inputs or goods that are used or intended to be used for making taxable
supplies
 The invoice/ other documents issued by the supplier of goods or services evidencing the
payment of duty/ tax on such goods or an Input Service Distributor’s invoice or Input Service
Distributor’s Credit Note or any document issued by an Input Service Distributor should be in
possession of the recipient
 The invoice should not be more than 12 months prior to 01.07.2017

27. 7(a) Details of inputs held in stock or inputs contained in semi-finished or
finished goods held in stock(Value) (Refer Section 140(3) of the CGST Act)
 The supplier of services is not eligible for any abatement under Sec 140(3) of the
CGST Act 2017
 The person should not have opted for payment of tax under the composition scheme u/s
10 of CGST Act
 No input tax credit shall be availed by a registered person in respect of any tax that has
been paid in pursuance of any order where any demand has been confirmed on account of
any fraud, willful misstatement or suppression of facts
 It should be ensured that credit taken here should not have been taken in Table 5(a)

28. (S-140(5) and (7))
Goods / Services were received
on/after appointed day
REGISTERED TAX PAYER
But Duty /Tax paid under existing
law
Receipt should be recorded in book of
accounts within 30 days of appointed day
(further 30 days by commissioner)
+
Furnish a statement
INPUT SERVICE
DISTRIBUTOR
Services were received prior to
appointed day
Even if invoices are received
on/after appointed day
Shall be eligible for distribution as credit
under this Act
28

29. 7(b) Distribution of CENVAT Credit by Input Service Distributor
(Refer Section 140(7) of the CGST Act)
 Section 140(7) of the CGST Act provides for Credit distribution of service tax by
Input Service Distributor. The input tax credit on account of any services received
prior to 01.07.2017 by an Input Service Distributor shall be eligible for distribution as
credit even if the invoices relating to such services are received on or after
01.07.2017. The officer should prepared a list of all recipients of such credit
distributed and write to the respective Audit Commissionerate having jurisdiction over
the said ISD, to check whether proper credit has been availed.

30. (S-140(8))
• ITC CARRIED FORWARD
• Should be admissible as ITC under this Act
• May also transfer to any registered person having
same PAN for which Centralized RC was obtained
• Has to furnish return (for the immediate preceding
period) within 3 months of the appointed day
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31. Should be admissible as ITC under
this Act
CENVAT CREDIT
CARRIED FORWARD
Has to furnish return (for the
immediate preceding period)
within 3 months of the appointed
day
May also transfer to any registered person
having same PAN for which Centralized RC
was obtained
31

32. 8. Transfer of CENVAT credit for Registered person having Centralized
Registration under existing law (Refer Section 140(8) of the CGST Act )
 The officer should prepare a list of taxpayers to whom the credit has been
transferred and send details to the Audit Commissionerate having jurisdiction over
the Centralised Office, to check whether proper credit has been availed

33. Conditions:
 Removal/Dispatch to the job worker prior to the appointed day&
 Returned within six months from the appointed day/extended period (not more than 2
months)
 Manufacturer & Job Worker both declare the details of Inputs/Semi-finished/Finished Goods
held in stock by the Job Worker on the appointed date
No Tax is
payable
In Semi-Finished
goods/Finished goods
Manufacturer can (within specified
period)transfer finished goods to the
premises of any regd. Taxable person on
payment of tax or for Export – without
tax
If NOT returned within the specified period, the ITC to be recovered as arrears of Tax under the
CGST/SGST Act.
33

34. 9 Goods sent to job worker and goods held in stock as job worker
(Refer Section 141 of the CGST Act)
 Goods are liable for payment of taxes under the existing law if goods are not
returned within 6 months or extended period ( + 2 months) input tax credit availed in
respect of inputs removed will be recovered from the Principal
 Principal and Job Worker should declare details of inputs held in stock by the job
worker on behalf of the principle on 01.07.2017

35. VERIFICATION OF TRAN-1
KEY POINTS
a) Please note that disputed credit should not have been transitioned under
the GST Regime.
b) CESS is not allowed to be transitioned
c) Any anomalies in Tran-1 can be physically verified by the field officers
and CGST officers are empowered to do verification of TRAN credit of
assessees allotted to the States too.

36. TRAN-2

37. TRAN-2

38. TRAN-2