How to File GST TRAN-1 Form: A Complete Guide

Individuals possessing input tax credit (ITC) on their closing stock, who transitioned to GST from previous tax systems like VAT, Service Tax, or Central Excise, are required to submit Form TRAN-1. This form mandates the declaration of closing stock balances as of July 1, 2017, enabling the claim of ITC on these older inventories under the GST framework. Originally, TRAN-1 could be submitted and revised a single time on the GST Portal until December 27, 2017.

Recent Developments

As of October 1, 2022, the GST portal reactivated the option for taxpayers to submit or amend previously filed TRAN 1/2 forms, complying with a Supreme Court order. This filing period was accessible from October 1, 2022, to November 30, 2022. Additionally, the GST portal issued an official advisory detailing the updated procedures for claiming transitional Input Tax Credit (ITC).

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

Step 1: Access the GST Portal

Begin by logging into the official GST Portal.

Step 2: Navigate to Transition Forms

Proceed to ‘Services’, then ‘Returns’, and finally select ‘Transition Forms’.

Step 3: View TRAN-1 Options

All available TRAN-1 related options will be visible. Choose ‘Yes’ or ‘No’ from the dropdown, indicating whether a return has been filed in the preceding six months. Important Note: If TRAN-1 has been previously submitted, a ‘Reopen’ option becomes available to adjust or append existing data. However, any modifications and subsequent submissions are permitted only once.

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

This part requires taxpayers to enter particulars concerning the Input Tax Credit (ITC) that needs to be transferred from the pre-GST period to the current GST system. Fill in all required fields and save the information. Any detected errors must be corrected before proceeding.

Step 5: Sections 6(a), 6(b) – Unavailed Credit on Capital Goods

This area displays information about capital goods for which unutilized Input Tax Credit (ITC) is to be transferred. Invoice-specific details must be provided under each respective tab. For numerous entries, a JSON file upload option is available.

Step 6: Sections 7(a), 7(b), 7(c), 7(d) – Input Stock Details

This section requires a summary of:

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

Step 7: Section 8 – CENVAT Credit Transfer for Centralized Registrations

This part mandates a summary of the Input Tax Credit (ITC) to be transferred as CGST credit to the present GSTIN. It is essential that the Permanent Account Number (PAN) linked to the current GSTIN matches the PAN used under the previous tax system. The specified amount will be credited to your electronic credit ledger.

Step 8: Sections 9(a), 9(b) – Goods with Job Worker

Summarize goods dispatched to a job worker and held in their stock on behalf of the principal, as per Section 141. This section is organized into two distinct tabs:

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

After inputting all necessary details under each tab, click ‘Save’. Any identified errors will be displayed and must be rectified to continue the process.

Step 9: Sections 10(a), 10(b) – Goods Held by Agent

Present a summary of goods held in stock by an agent on behalf of the principal under Section 142(14) of the SGST Act, along with the eligible credit for agents on such stock. This section is structured with two tabs:

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

Step 10: Section 11 – Credit Availed under Section 142(11(c))

This part requires a summary of taxes paid during the pre-GST period and the corresponding eligible credit under GST for supplies that were subject to VAT and Service Tax and are also taxable under the current GST regime.

Step 11: Section 12 – Goods Sent on Approval (Pre-GST)

Provide summary information for goods initially sent on an approval basis after January 1, 2017 (prior to July 1, 2017), but subsequently returned after July 1, 2017, in accordance with Section 142(12).

Step 12: Submit TRAN-1

Click the ‘Submit’ button to finalize the entered details. Once submitted, the data cannot be altered.

Step 13: Confirm Submission

A warning message will appear; click ‘PROCEED’ to continue. The status of TRAN-1 on the GST Portal will update from ‘Not filed’ to ‘Submitted’. Upon successful submission, the transitional credit claimed in the form is added to the Electronic Credit Ledger balance. This credit, however, becomes available for utilization only after the TRAN 1 form is officially filed.

Step 14: Final Filing with DSC or EVC

Input the authorized signatory details and select one of the following filing methods:

• File with DSC (Digital Signature Certificate): Click ‘proceed’ on the warning screen, choose the appropriate certificate, and then click ‘SIGN’.
• File with EVC (Electronic Verification Code): Enter the One-Time Password (OTP) sent to the registered email and mobile number of the authorized signatory on the GST portal, then click ‘Verify’.

A success message will confirm the filing, and an acknowledgment will be generated. Click ‘OK’. The status of TRAN-1 will change from ‘Submitted’ to ‘Filed’. The Input Tax Credit (ITC) claimed in TRAN-1 will be credited to the taxpayer’s credit ledger once the form is successfully filed. This ITC, recorded in the Electronic Credit Ledger, can then be utilized to settle liabilities from GSTR-3B (for July 2017) or any future returns.