Understanding GST TRAN-3: Purpose and Filing Procedure

Latest Update (May 16, 2020)

The Central Board of Indirect Taxes and Customs (CBIC) announced May 18, 2020, as the effective date for provisions under Section 128 of the Finance Act, 2020. This section enacts amendments to Section 140 of the Central Goods and Services Tax Act, 2017, which sets the deadlines for claiming transitional input tax credit under the GST framework.

Manufacturers or dealers who have obtained a Credit Transfer Document (CTD) must submit TRAN-3 to transfer pre-GST paid taxes into the new GST system. This article outlines the specifics of TRAN-3 and guides you through its filing process.

What is TRAN-3?

TRAN-3 is a form used by registered taxpayers to claim transitional input tax credit (ITC) if they were previously registered under the Central Excise Act of 1944 and have either issued or utilized a Credit Transfer Document (CTD).

A Credit Transfer Document (CTD) serves as proof of excise duty paid on goods manufactured and cleared during the pre-GST era. Manufacturers issue CTDs to unregistered persons under the Central Excise Act who are registered traders under GST.

Who Must File TRAN-3?

TRAN-3 filing is mandatory for:

• Manufacturers who have issued CTDs to dealers.
• Dealers who have received CTDs from manufacturers.

TRAN-3 Due Date

The initial due date for TRAN-3 was set for 60 days following July 1, 2017. However, the GST Portal still allows TRAN-3 submissions. It is important to note that no official notification has been released extending the original deadline for TRAN-3.

How to File TRAN-3 on the GST Portal

Here is a step-by-step guide for filing TRAN-3 on the GST Portal:

Step 1: Access the GST Portal

Log in to the GST Portal.

Step 2: Navigate to Transition Forms

Go to 'Services' > 'Returns' > 'Transition Forms'.

Step 3: Select TRAN-3

On the Transition Forms page, click on the TRAN-3 tab.

Step 4: Choose Your Role

Select the appropriate tile based on whether you are a manufacturer or a dealer.

Step 5: Enter Manufacturer Details

If you are a manufacturer issuing CTDs, click 'ADD DETAILS' in the 'To be filled by manufacturer issuing CTDs' tile.

Step 6: Provide Specifics for Manufacturers

Enter the following information:

• GSTIN
• Total number of CTDs issued
• Number of invoices, total quantity, and total value for which CTDs were issued
• Excise duty paid on the goods

Then, click 'SAVE'.

Step 7: Enter Dealer Details

If you are a dealer claiming ITC based on CTDs from a manufacturer, click the 'To be filled by dealer availing Credit on CTD' tile.

Step 8: Provide Specifics for Dealers

Fill in the necessary details on this page to carry forward the credit you received as a dealer. After entering all information, click 'SAVE'.

Step 9: Submit TRAN-3

Click the 'SUBMIT' button to file TRAN-3. Remember that submitted TRAN-3 forms cannot be modified. The electronic credit ledger updates based on the information provided in TRAN-3.

Step 10: Confirm Submission

Click 'PROCEED' in the warning message to continue. The form's status will change to 'Submitted', and a success message will appear.

Step 11: Authenticate the Form

Authenticate the form using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Click 'FILE WITH DSC' to sign with DSC, or 'FILE WITH EVC' to validate with EVC. Once filed, the TRAN-3 status will change to 'Filed'. You can monitor the form's status by navigating to 'Services' > 'Returns' > 'Track Return Status'.