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Filing of Form TRAN-I to avail Input Tax Credit

Circular No.ES/262/2017-18                                                                                                         December 14, 2017

To: Members of the Council

Sub: Filing of Form TRAN-I to avail Input Tax Credit

Dear Member,

The Ministry of Finance has released a Press Note dated 12th December, 2017 regarding filing of Form TRAN-I to avail Input Tax Credit.

As you are aware, the GST TRAN 1 form is transition form for the already registered taxpayers in old schemes who are filing the GST TRAN -1 form for availing their previous input tax credit accumulated from earlier purchased stock before the implementation of the GST.

As per the Press Note released on 12th December, 2017 the Ministry of Finance has highlighted the following –

(A) Procedures to be followed while filing the Form TRAN-I for availing Input Tax
            Credit -

  • A tax payer could file Form TRAN-1 and avail input tax credit on the basis of closing balance of the input tax credit declared in the last return under the pre GST regime.
  • The last date for filing of Form TRAN-1 is 27th December, 2017.
  • In keeping with the philosophy of voluntary compliance, revision of Form TRAN-1 has also been provided.
  • The last date for revision of TRAN-1 is also 27th December, 2017.

(B)  Ministry has noted the following -

  • Some taxpayers have availed extraordinarily high transitional credit of CGST which is neither commensurate with the trend of input tax credit of the industry nor as maintained by the taxpayer himself in the past.
  • Some of these high transitional credits may have a bonafide explanation or may be a case of bonafide mistake.
  • High transitional credit has been claimed in many cases for which perhaps no bonafide explanation exists.
  • Analysis to identify such units is underway. Such behaviour leads to breach of trust between the taxpayer and the tax-administration, which is the bed-rock of self-assessment regime in GST.

(C)     Ministry has advised the following –

  • Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1 by 27th December, 2017.
  • Ensure that only correct and bonafide credit is availed in transition, failing which the tax administration would be constrained to initiate audit and enforcement action against the identified units.

The Council requests our members to follow the above instructions and guidelines issued by the Ministry of Finance.

Thanking You,



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