Comprehensive Guide to Filing TRAN-1 on the GST Portal

Form TRAN-1 must be filed by individuals and entities holding Input Tax Credit (ITC) on their closing stock who have transitioned to the Goods and Services Tax (GST) system from previous tax regimes such as VAT, Service Tax, or Central Excise. This form requires businesses to declare their closing stock balance as of July 1, 2017, to enable them to claim ITC on these existing goods under GST. Initially, TRAN-1 could be submitted and revised on the GST Portal until December 27, 2017.

Latest Update on TRAN-1 Filing

As of October 1, 2022, the GST portal reactivated the option for filing or amending previously submitted TRAN-1 or TRAN-2 forms, in compliance with a Supreme Court order. This filing period was accessible from October 1, 2022, to November 30, 2022. Additionally, the GST portal issued an advisory detailing the updated procedures for claiming transitional ITC.

Step-by-Step Guide to Filing TRAN-1 on the GST Portal

Follow these steps to successfully file Form TRAN-1 on the official GST Portal:

Step 1: Log In to the GST Portal

Access the GST Portal using your credentials.

Step 2: Navigate to Transition Forms

From the main menu, select 'Services', then 'Returns', and finally 'Transition Forms'.

Step 3: Select Filing Status

You will see various options related to TRAN-1. Choose 'Yes' or 'No' from the drop-down menu based on whether you have filed a return in the last six months. If TRAN-1 was previously submitted, a 'Reopen' button will be available, allowing for a one-time modification or addition of data.

Step 4: Enter Tax Credit Carried Forward (Sections 5a, 5b, 5c)

This section is for detailing the ITC that needs to be carried forward from the pre-GST era to the current GST regime. Input all necessary information, then save your entries. Any discrepancies or errors will be highlighted for correction.

Step 5: Provide Capital Goods Details (Sections 6a, 6b)

Here, you must provide information on capital goods for which unavailed ITC is being carried forward. Invoice-wise details are required under each tab. For numerous entries, a JSON file can be uploaded.

Step 6: Declare Inputs Held in Stock (Sections 7a, 7b, 7c, 7d)

Summarize the following in this section:

• Inputs held in stock as of July 1, 2017.
• Inputs contained within semi-finished or finished goods held in stock as of July 1, 2017.

Step 7: Detail CENVAT Credit Transfer (Section 8)

This section requires a summary of ITC to be transferred as CGST credit to your current GSTIN. It is essential that the PAN linked to your current GSTIN matches the PAN used under the previous tax regime. The specified amount will be added to your electronic credit ledger.

Step 8: Report Goods Sent to Job-Worker (Sections 9a, 9b)

Provide comprehensive details of goods dispatched to a job-worker and held in their stock on behalf of the principal, under Section 141. This section has two subsections:

• Details of Goods Sent as Principal
• Details of Goods Held in Stock

After entering details in each tab, click 'Save'. Errors, if any, must be resolved before proceeding.

Step 9: Report Goods Held as Agent (Sections 10a, 10b)

Summarize goods held in stock by an agent on behalf of the principal, as per Section 142(14) of the SGST Act, along with the permissible credit for agents on such stock. This section includes two tabs:

• Goods in Stock (Held on behalf of principal)
• Goods in Stock (Held by Agent)

Step 10: Declare Credit Availed (Section 11)

Furnish summary details of tax paid under the pre-GST system and the corresponding admissible credit under GST for supplies that were taxable under both the VAT/Service Tax regimes and the GST regime.

Step 11: Provide Details of Goods Sent on Approval (Section 12)

Summarize goods sent on an approval basis after January 1, 2017 (before July 1, 2017) but returned after July 1, 2017.

Step 12: Submit TRAN-1

Click the 'Submit' button to finalize and freeze the entered details. Once submitted, the data cannot be altered.

Step 13: Confirm Submission

A warning message will appear; click 'PROCEED'. The status of TRAN-1 on the GST Portal will change from 'Not filed' to 'Submitted'. Upon successful submission, the transitional credit claimed in the form will be added to the Electronic Credit Ledger, though it can only be utilized after TRAN-1 is officially filed.

Step 14: File TRAN-1 with DSC or EVC

Enter the authorized signatory's details and choose one of the following filing options:

• File with DSC (Digital Signature Certificate): Click 'Proceed' on the warning screen, select your certificate, and click 'SIGN'.
• File with EVC (Electronic Verification Code): Input the One-Time Password (OTP) sent to the authorized signatory's email and registered mobile number on the GST portal, then click 'Verify'.

A success message will be displayed, and an acknowledgment will be generated. Click 'OK'. The status of TRAN-1 will change from 'Submitted' to 'Filed'. The ITC claimed in TRAN-1 is then credited to the taxpayer's credit ledger upon successful filing. This ITC can subsequently be used to offset liabilities in GSTR-3B (for July 2017) or any subsequent returns.