TRANSITIONAL PROVISION

1. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
CA ABHISHEK AGARWAL, ACA, DISA M| 9831982004 E|abhishek@caasa.org W| www.caasa.org Page 1
TRANSITIONAL PROVISION
Transitional Provision under chapter XXV of Model Goods And Service Tax Law
comprising section 141 to 162E.
This section gives a better understanding on various issues which a business unit/service
provider will face over from earlier law to GST. This also highlights various open issues
which need to be addressed timely by government so that there is smooth transition to
Goods and Service Tax (GST) without any hiccup. Some of the important transitional
provisions are discussed as under:
GENERAL PROVISIONS
The person already appointed, for discharging the functions entrusted by the Central Law
or State Law which are now being subsumed in GST, shall be deemed to be the GST
Officers or the Competent Authorities under the legal provisions of CGST/SGST/IGST
Law.

2. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
CA ABHISHEK AGARWAL, ACA, DISA M| 9831982004 E|abhishek@caasa.org W| www.caasa.org Page 2
MIGRATION OF EXISTING TAXPAYERS IN RELATION TO REGISTRATION
Q. Is there an automatic registration under GST framework for those taxpayers who
are already registered under State/Central Government under State VAT?
Ans: No. Every Taxpayer will required to be registered under GST [Section 19], there
will be multiple registration for every State and verticals, however a provisional
certificate of registration will be issued for initial six month to every assesses who was
registered under any of the earlier laws. [Section -142. Migration of existing Taxpayers
to GST].
SEC 142(1)
• Every person registered under any earlier laws shall be
issued a Registration Certificate (RC) on provisional basis.
SEC 142(2)
• Such provisional RC shall be valid for a period of 6 months
from the date of issue
SEC 142 (3)
• Every person will submit relevant informations as
prescribed to the relevant authority.
SEC 142 (4)
• After furnishing of all informations, RC shall be granted on
final basis by Central/State Government.
SEC 142 (5)
• RC may be cancelled if dealer fails to furnish the
informations within prescribed period.

3. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
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AMOUNT OF CENVAT CREDIT CARRIED FORWARD IN A RETURN
TO BE ALLOWED AS INPUT TAX CREDIT
Q. Whether CENVAT Credit shall be allowed to carry forward under GST regime?
Ans: Yes, As per Section 143(1) the taxpayer shall be eligible to carry forward the
Cenvat credit reflected by him/her in the returns filed under the earlier laws. The only
condition where such carry forward shall not be allowed is when the Cenvat credit
permissible under the earlier law is not admissible under the GST Law for that particular
input/capital goods/input service.
Illustration 1: Assume that GST is applicable from 1st April, 2017 and the amount of credit as
per the return for the period ending 31st March, 2017 is as follows:
Particulars of Input tax Credit Credit amount as per return
Central Excise 2,00,000
Service Tax 1,00,000
Education Cess 10,000
Secondary and Higher Education Cess 5,000
PROVIDED that the taxable person shall not be allowed to take credit unless the
said amount was admissible as Cenvat credit under the earlier law and is
admissible as input tax credit under this ACT.
A registered taxable
person shall be entitled to
take credit of CENVAT
credit (CGST)/ Value Added
Tax(SGST) credit carried
forward in return furnished
under earlier law
Credit shall be allowed if
amount was admissible as
credit under the earlier
Laws or Act.

4. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
CA ABHISHEK AGARWAL, ACA, DISA M| 9831982004 E|abhishek@caasa.org W| www.caasa.org Page 4
Krishi Kalyan Cess 5,000
Additional Duty u/s 3(1) of CTA 40,000
Additional Duty u/s 3(5) of CTA 30,000
Input Tax Credit under VAT 50,000
Total 4,40,000
What will be the amount of opening CGST and SGST to be brought forward as per the GST
Law as on 1st April, 2017?
Ans. The amount of CGST and SGST to be brought forward on 1st April, 2017 will be
calculated as follows:
Situation I: If the tax payer is a Manufacturer
CGST Components CGST Value
Central Excise 2,00,000
Service Tax 1,00,000
Education Cess 10,000
Secondary and Higher Education Cess 5,000
Additional Duty u/s 3(1) of CTA 40,000
Additional Duty u/s 3(5) of CTA 30,000
Total CGST 3,85,000
Note: KKC will not be allowed
SGST Components SGST Value
Input Tax Credit under VAT 50,000
Total SGST 50,000
Situation II: If the tax payer is a Service Provider
CGST Components CGST Value
Central Excise 2,00,000
Service Tax 1,00,000
Education Cess 10,000
Secondary and Higher Education Cess 5,000
Krishi Kalyan Cess 5,000
Additional Duty u/s 3(1) of CTA 40,000
Additional Duty u/s 3(5) of CTA 30,000
Total CGST 3,90,000

5. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
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UNAVAILED CENVAT CREDIT ON CAPITAL GOODS, NOT FORWARD IN
RETURN, WILL BE ALLOWED IN CERTAIN SITUATION
A registered taxable person shall be allowed to take credit in Electronic ledger a/c for the
CENVAT on capital goods, not carry forward in return in earlier law, in such manner as
prescribed.
These provisions are applicable both under CGST and SGST.
EXAMPLES:
 50% of CENVAT on capital goods under service tax can be availed only in next
year or if 100 cenvat on capital goods have not availed in first year which can be
taken under this Act.
Q: If Registered Taxable Person purchased capital goods and received the invoice before
31.03.2016 but not received the capital good. Capital Goods has been received in April,
2017. Will he entitle for ITC.
Ans: Yes
Unavailed CENVAT Credit”
Means the amounts remains after
subtracting the amount of
CENVAT credit availed on
capital goods under earlier law.
“Capital Goods Means “as
defined under Rule 2(a) of
CENVAT Rule, 2004.
Any CENVAT wrongly taken
shall be recovered as arrear under
the ACT.
EXPLANATION -1 EXPLANATION -2

6. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
CA ABHISHEK AGARWAL, ACA, DISA M| 9831982004 E|abhishek@caasa.org W| www.caasa.org Page 6
Q: A purchased capital goods on which VAT credit was not available though in GST it is
available. Will the A will get the credit.
Ans: No .Since he was not entitled for ITC under the earlier Law.
Credit of eligible duties and taxes in respect of input held in stock to be
allowed in allowed in certain situations
1)As per Section 145 the Registered Taxable Person, who was not liable to be registered
under the earlier law or who was engaged in the manufacture of exempted goods under
the earlier law but which are liable to tax under this act, shall be entitle to take credit in
Electronic credit ledger A/c of eligible duties and taxes(under CGST law)and Value
Added Tax(under SGST law) in respect of input held in stock on the appointed day
subject to the following conditions:
2) Credit shall be calculated in accordance with GAAP as prescribed.
3) Credit provided to taxable person shall be recovered as arrear tax under this act if the
amount is found to be recoverable under any proceeding in earlier law after the appointed
day.
Such input /
goods shall be
used for making
taxable supplies
under this Act
Such taxable
person are
eligible for
credit under
this Act.
Said taxable person is
holding valid invoice or
document under the
earlier law and having
evidence that tax were
paid on input.
Such invoice or
documents must not
be older that 12
months
immediately
proceeding the
appointed day .

7. ABHISHEK SHANKAR AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
TAX TABLE
[7TH
EDITION]
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DUTIES AND TAXES ELIGIBLE FOR TAKING CREDIT
The Claim in this section can be availed if:
 The taxable person has not been registered under the earlier law. The person must
be a
registered taxable person under the GST laws;
 The person must not have been liable for registration under the earlier laws;
 He must have been engaged in the manufacture of exempted goods under the
earlier
Laws but those goods must be liable to tax under GST laws;
Eg 1: An unregistered manufacturer in Mumbai having a turnover of Rs. 70 lakhs in the
current financial year was availing SSI exemption. He will now be liable to tax under
GST as his turnover is greater than the threshold of Rs. 10 lakhs which has been
prescribed under GST.
Eg 2: A trader supplying goods on e-commerce having an aggregate turnover of Rs. 1
lakhs was not required to be registered as per the State VAT law earlier. Now, as per
the definition of the taxable person as per Section 9 read with Schedule III, there is no
threshold for such category of persons. Therefore, he will be liable to pay tax under
GST though he was below the taxable turnover earlier.
EXCISE DUTY
ADDITIONAL EXCISE DUTY
NATIONAL CALAMITY
CONTINGENT DUTY
ADDITIONAL CUSTOM DUTY
SERVICE TAX