{"id":25788,"date":"2021-02-10T15:06:19","date_gmt":"2021-02-10T09:36:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=25788"},"modified":"2024-07-03T17:32:19","modified_gmt":"2024-07-03T12:02:19","slug":"format-of-tran-1-form-tran-2-form","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/","title":{"rendered":"An Overview on Format of TRAN 1 Form &#038; TRAN 2 Form"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A major concern for enterprises incorporated under the regime of GST is to ensure that they are not lost on the tax benefits and input credits of the old regime. These taxes can be paid on purchases, inputs, raw materials, semi-finished goods, finished goods or materials sent to worker. For most enterprises, these taxes are available as input credits on July 30. And to take advantage of these, it is important to transfer them to GST regime. CBEC has issued transition rules and Tran 1 form &amp; Tran 2 Form, and with their help, businesses can attribute the old system to GST.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#What_is_Old_ITC_GST_Regime\" >What is Old ITC\n&amp; GST Regime?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#Broad_Aspects_of_Transition_to_GST\" >Broad Aspects\nof Transition to GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#Details_Required_in_TRAN_1_Form\" >Details\nRequired in TRAN 1 Form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#Details_Required_in_Form_TRAN_2\" >Details\nRequired in Form TRAN 2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#What_to_do_when_Documents_are_not_available_to_Show_the_Payment_of_Excise_Duty\" >What to do when Documents are not available to Show the\nPayment of Excise Duty?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#Conditions_to_be_fulfilled_to_Claim_Credit\" >Conditions to\nbe fulfilled to Claim Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/format-of-tran-1-form-tran-2-form\/#Concluding_Remarks\" >Concluding\nRemarks<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Old_ITC_GST_Regime\"><\/span>What is Old ITC\n&amp; GST Regime? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any business that is or does not have a stock-whether registered before <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods and services tax<\/strong><\/a> will be entitled to claim the tax credit paid under the pre-GST regime. This claim of ITC also depends on certain conditions which we will discuss further.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Types of\nForms Available<\/h3>\n\n\n\n<p>To help businesses transition smoothly and advance their ITC, CBEC has issued two transition forms called TRAN 1 form and TRAN 2.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Form No.<\/strong>\n  <\/td><td>\n  <strong>Person who is Eligible to File<\/strong>\n  <\/td><td>\n  <strong>Person who is not Eligible to File<\/strong>\n  <\/td><\/tr><tr><td>\n  TRAN 1 Form\n  <\/td><td>\n  Individuals registered\n  under GST, may be registered or unregistered under the old regime\n  <\/td><td>\n  Those registered under\n  GST as composition dealers\n  <\/td><\/tr><tr><td>\n  TRAN 2 Form\n  <\/td><td>\n  Registered persons\n  under GST but unregistered or under the old regime\n  A dealer\/ trader who\n  does not have documentation of fees paid\n  <\/td><td>\n  A manufacturer is\n  registered under Excise Department\n  A service provider\n  registered under service tax\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Broad_Aspects_of_Transition_to_GST\"><\/span>Broad Aspects\nof Transition to GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Following are the aspects of transition to GST, which are given below:-<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>ITC of the old regime which you want to claim in the new regime (Report in TRAN 1 form)<\/li>\n\n\n\n<li>Avoid any interference in the material being sent to the employees working (Reported in TRAN1 form).<\/li>\n\n\n\n<li>Report Agent-Principal Dealing and Shipping Agreement (Report in TRAN1 form)<\/li>\n\n\n\n<li>Claims &amp; tax refunds under the old system (not reported in TRAN 1 form\/TRAN 2 form)<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/\">An Outlook on Effect of VAT Return after GST Implementation<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Important\nPoints for Understanding regarding Transition to GST<\/h3>\n\n\n\n<ul>\n<li>Separate transition forms must be filed for each GSTIN.<\/li>\n\n\n\n<li>Any credit that individual want to carry forward from the old rule should be an eligible credit under GST.<\/li>\n\n\n\n<li>Accumulated credit of old regime can be taken in GST. This is allowed only if you have filed the return for the last six months under the old rule. Therefore, you will have to properly file the old returns of VAT\/ \/<strong><em>Service Tax<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Service_Tax\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>\/Excise.<\/li>\n\n\n\n<li>Any tax which imposed by the central govt. &amp; duties such as excise &amp; service tax will be carried forward in terms of CGST<\/li>\n\n\n\n<li>Any state tax like VAT will be carried forward as SGST<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Details_Required_in_TRAN_1_Form\"><\/span>Details\nRequired in TRAN 1 Form<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Following are the details required at the time of filing Tran 1 form<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>To mention GSTIN is mandatory in TRAN 1 form<\/li>\n\n\n\n<li>To mention legal name of the individual is\nmandatory in TRAN 1 form.<\/li>\n\n\n\n<li>If you are using any trade name for your\nbusiness, then mention trade name on TRAN 1 form<\/li>\n\n\n\n<li>Make sure that you have provided all the returns\nessential under the current law for the last 6 months &#8211; the answer is in the\nform of Yes \/ No. <\/li>\n\n\n\n<li>The closing balance of the CENVAT \/ VAT credit\nof previous returns can be taken as a credit in your GST electronic ledger,\nwhen you have filed returns for the last six months under the old rule.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Details_Required_in_Form_TRAN_2\"><\/span>Details\nRequired in Form TRAN 2 <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>It can be filed by a dealer \/ trader who have\nregistered for GST, but was unregistered under the old rule.<\/li>\n\n\n\n<li>A manufacturer\/service provider cannot file Form\nGST-TRAN 2.<\/li>\n\n\n\n<li>TRAN 2 must be filed by a dealer or trader at\nthe end of every month, when the stock is sold, reporting the details to claim\nthe ITC.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Conditions\nthat Must Meet by Individual <\/h3>\n\n\n\n<ul>\n<li>Such goods were not fully exempted from excise\nduty \/ VAT or zero rated goods under excise duty \/ VAT.<\/li>\n\n\n\n<li>The scheme operates for only 6 months from 1\nJuly which means the stock have to be cleared by the end of December in order\nto claim the credit.<\/li>\n\n\n\n<li>Individual must have a document which shows the\npurchase of such goods.<\/li>\n\n\n\n<li>Stock of goods on which credit is being claimed\nis stored in such a way that it is easily identifiable.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Information to be filled in TRAN 2 Form<\/h3>\n\n\n\n<ul>\n<li>GSTIN<\/li>\n\n\n\n<li>Name of Taxable Person<\/li>\n\n\n\n<li>Tax period (mention the month and year for which this form is being filed)<\/li>\n\n\n\n<li>Details of inputs placed on stock on July 1 for which you do not have any invoice \/ document for payment of tax made for the electronic credit leader.<\/li>\n\n\n\n<li>Stock held with no Supporting Documents Showing Payment of Excise (central tax)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_do_when_Documents_are_not_available_to_Show_the_Payment_of_Excise_Duty\"><\/span>What to do when Documents are not available to Show the\nPayment of Excise Duty?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong> In case individual does not have a document showing the payment of Excise Duty, then he is supposed to fill the following details \u2013  <\/strong><\/em><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"898\" height=\"901\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/What-to-do-when-Documents-are-not-available-to-Show-the-Payment-of-Excise-Duty.png\" alt=\"What to do when Documents are not available to Show the Payment of Excise Duty\" class=\"wp-image-25841\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/What-to-do-when-Documents-are-not-available-to-Show-the-Payment-of-Excise-Duty.png 898w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/What-to-do-when-Documents-are-not-available-to-Show-the-Payment-of-Excise-Duty-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/What-to-do-when-Documents-are-not-available-to-Show-the-Payment-of-Excise-Duty-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/What-to-do-when-Documents-are-not-available-to-Show-the-Payment-of-Excise-Duty-768x771.png 768w\" sizes=\"(max-width: 898px) 100vw, 898px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_to_be_fulfilled_to_Claim_Credit\"><\/span>Conditions to\nbe fulfilled to Claim Credit <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>CGST or SGST payable on such supplies has been\npaid.<\/li>\n\n\n\n<li>Such goods were not fully exempted under excise\nor NIL rated or under the respective State VAT Act.<\/li>\n\n\n\n<li>Documents for the purchase of such goods are\navailable with the registered person.<\/li>\n\n\n\n<li>Shows the details of the stock held at the end\nof each of the tax periods, in which Form TRAN-2 details the supply of such\ngoods affected during the tax period.<\/li>\n\n\n\n<li>&nbsp;The allowed\ncredit amount will be credited in the electronic credit ledger.<\/li>\n\n\n\n<li>The stock of goods on which credit is availed is\nstored so that it can be easily identified by the registered person.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remarks\"><\/span>Concluding\nRemarks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To facilitate uninterrupted transfer of ITC under GST to existing\nphysical shares which have already suffered incidence of taxes under various\nexisting laws and are still lying with registered dealers on the due date, Transitional\nprovisions have been included in GST new regime. <\/p>\n\n\n\n<p>Sections 140 to 142 of the GST Act, 2017, and the regulations specifically accorded with the provisions of input tax credit to further the new GST regime. Kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> expert to know more about the format of TRAN 1 &amp; TRAN 2 form<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/place-of-supply-of-imports-of-goods-or-services-under-the-regime-of-gst\/\">Understanding on Place of Supply of Imports of Goods or Services under the Regime of GST <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A major concern for enterprises incorporated under the regime of GST is to ensure that they are not lost on the tax benefits and input credits of the old regime. These taxes can be paid on purchases, inputs, raw materials, semi-finished goods, finished goods or materials sent to worker. For most enterprises, these taxes are [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":25840,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1519],"acf":{"service_id":"96"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":4326,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25788"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=25788"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25788\/revisions"}],"predecessor-version":[{"id":65190,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25788\/revisions\/65190"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/25840"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=25788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=25788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=25788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}