Rule 117 of CGST Rules – Tax or duty credit carried forward under any existing law or on goods held instock on the appointed day

(updated as on 15.11.2017)

(1) Every registered person entitled to take credit ofinput tax under section 140 shall, within ninety days of the appointed day, submit adeclaration electronically in FORM GST TRAN-1, duly signed, on the commonportal specifying therein, separately, the amount of input tax credit of eligible dutiesand taxes, as defined in Explanation 2 to section 140, to which he is entitled under theprovisions of the said section:
Provided that the Commissioner may, on the recommendations of theCouncil, extend the period of ninety days by a further period not exceeding ninetydays.
Provided further that where the inputs have been received from an ExportOriented Unit or a unit located in Electronic Hardware Technology Park, the creditshall be allowed to the extent as provided in sub-rule (7) of rule 3 of the CENVATCredit Rules, 2004.
(2) Every declaration under sub-rule (1) shall-

(a) in the case of a claim under sub-section (2) of section 140, specify separately thefollowing particulars in respect of every item of capital goods as on the appointed day-

(i) the amount of tax or duty availed or utilized by way of input tax creditunder each of the existing laws till the appointed day; and

(ii) the amount of tax or duty yet to be availed or utilized by way of input taxcredit under each of the existing laws till the appointed day;

(b) in the case of a claim under sub-section (3) or clause (b) of sub-section (4) orsub-section (6) or sub-section (8) of section 140, specify separately the details of stock heldon the appointed day;

(c) in the case of a claim under sub-section (5) of section 140, furnish the followingdetails, namely:

(i) the name of the supplier, serial number and date of issue of the invoice by thesupplier or any document on the basis of which credit of input tax wasadmissible under the existing law;

(ii) the description and value of the goods or services;

(iii) the quantity in case of goods and the unit or unit quantity codethereof;

(iv) the amount of eligible taxes and duties or, as the case may be, thevalue added tax [or entry tax] charged by the supplier in respect of the goods orservices; and

(v) the date on which the receipt of goods or services is entered in thebooks of account of the recipient.

(3) The amount of credit specified in the application in FORM GST TRAN-1 shall becredited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2on the common portal.
(4)

(a)

(i) A registered person who was not registered under the existing law shall, inaccordance with the proviso to sub-section (3) of section 140, be allowed to avail of inputtax credit on goods (on which the duty of central excise or, as the case may be, additionalduties of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, isleviable) held in stock on the appointed day in respect of which he is not in possession ofany document evidencing payment of central excise duty.

(ii) The input tax credit referred to in sub-clause (i) shall be allowed at the rate ofsixty per cent. on such goods which attract central tax at the rate of nine per cent. or moreand forty per cent. for other goods of the central tax applicable on supply of such goods afterthe appointed date and shall be credited after the central tax payable on such supply has beenpaid:

Provided that where integrated tax is paid on such goods, the amount ofcredit shall be allowed at the rate of thirty per cent. and twenty per cent. respectively of thesaid tax;

(iii) The scheme shall be available for six tax periods from the appointed date.

(b) The credit of central tax shall be availed subject to satisfying the following conditions,namely:-

(i) such goods were not unconditionally exempt from the whole of the duty of excisespecified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil rated inthe said Schedule;

(ii) the document for procurement of such goods is available with the registeredperson;

(iii) the registered person availing of this scheme and having furnished the details ofstock held by him in accordance with the provisions of clause (b) of sub-rule (2), submits astatement in FORM GST TRAN 2 at the end of each of the six tax periods during whichthe scheme is in operation indicating therein, the details of supplies of such goods effectedduring the tax period;

(iv) the amount of credit allowed shall be credited to the electronic credit ledger ofthe applicant maintained in FORM GST PMT-2 on the common portal; and

(v) the stock of goods on which the credit is availed is so stored that it can be easilyidentified by the registered person.

CHAPTER XIV

TRANSITIONAL PROVISIONS

Chapter XIVof CGST Rules,2017 consists of six rules relating to Transitional provision rulesunder the GST regime. All this rules are available for your ready reference.
Rule 117 :Tax or duty credit carried forward under any existing law or on goods held instock on the appointed day
Rule 118 :Declaration to be made under clause (c) of sub-section (11) of section 142
Rule 119 :Declaration of stock held by a principal and job-worker
Rule 120 :Details of goods sent on approval basis
Rule 120A :Revision of declaration in FORM GST TRAN-1
Rule 121 :Recovery of credit wrongly availed