Rule 117 CGST Rules 2017

Summary of Rule 117 CGST Rules 2017

( Rule 117 CGST Rules 2017 explains Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day  and is covered in Chapter XIV  – Transitional Provisions  : Inserted by the Central Goods and Services Tax (Second Amendment) Rules, 2017, w.e.f. 1-7-2017 amended by Central Goods and Services Tax (Third Amendment) Rules, 2017 and Central Goods and Services Tax (Second Amendment) Rules, 2018 .and Central Goods and Service Tax (Ninth Amendment) Rules, 2018, w.e.f. 10-9-2018.)

Rule 117 CGST Rules 2017

Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day

117. (1) Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of input tax credit ¹ [ of eligible duties and taxes, as defined in Explanation 2 to Section 140 ,] to which he is entitled under the provisions of the said section:

Provided that the Commissioner may, on the recommendations of the Council, extend the period of ninety days by a further period not exceeding ninety days:

Provided further that where the inputs have been received from an Export Oriented Unit or a unit located in Electronic Hardware Technology Park, the credit shall be allowed to the extent as provided in sub-rule (7) of rule 3 of the CENVAT Credit Rules, 2004.

7 [ (1A) Notwithstanding anything contained in sub-rule (1), the Commissioner may, on the recommendations of the Council, extend the date [Refer Note -9] for submitting the declaration electronically in FORM GST TRAN-1 by a further period not beyond 31st March, 2019, in respect of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and in respect of whom the Council has made a recommendation for such extension.]

(2) Every declaration under sub-rule (1) shall—

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

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

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

Provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at the rate of thirty per cent and twenty per cent respectively of the said 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:—

Notes on Amendments in Rule 117 CGST Rules 2017

9 Order No 4/2018 GST : Filing of GST TRAN-1 Form reopened Dated 17.09.2018

8 First proviso inserted by the Central GST (Ninth Amendment) Rules, 2018, w.e.f. 10-9-2018.

7 . Sub-rule (1A) inserted by the Central GST (Ninth Amendment) Rules, 2018, w.e.f. 10-9-2018.

6. Sub-clause (iii)  Substituted vide   CGST (Second Amendment) Rules 2018 vide Notification No 12/2018 Central Tax dated 7th March, 2018  .Prior to its substitution, said sub-clause read as under

“iii) the registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2), submits a statement in FORM GST TRAN-2 at the end of each of the six tax periods during which the scheme is in operation indicating therein, the details of supplies of such goods effected during the tax period” .]

5. Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Central Goods and Service Tax Rules, 2017 till the 30th day of June, 2018. vide Order No 1 /2018  Central Tax Dated 28th March, 2018

4. Extension of time limit for submitting the declaration in FORM GST TRAN-1 vide Order No 9/2017 GST Dated 15th November, 2017

3.Extension of time limit for submitting the declaration in FORM GST TRAN-1  vide Order No 07/2017 GST Dated 28th October, 2017

2. Extension of time limit for submitting the declaration in FORM GST TRAN-1 vide Order No 03/2017 GST Dated 21st September, 2017

1. Inserted by the Central Goods and Services Tax (Third Amendment) Rules, 2017, w.e.f. 1-7-2017.

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