TRAN 1 & TRAN 2 Format, Due Date -Transition of Old Input Credits to GST Regime

TRAN 1 & TRAN 2 Format, Due Date -Transition of Old Input Credits to GST Regime

A major issue for GST-registered businesses is ensuring that they do not lose out on the former regime’s tax benefits and input credits. These taxes could have been paid on inputs, raw materials, semi-finished goods, finished goods, or materials sent to workers on the job. On July 30th, most enterprises will be able to claim these taxes as an input credit. It’s also critical to move these to the GST regime in order to reap the benefits. The CBEC has issued transition regulations and formats, which allow firms to transfer credit from the previous regime to the GST system. Now, let’s know more about TRAN 1 & TRAN 2 Format.

Recent Updates

May 16th, 2020

The CBIC has announced that the requirements of section 128 of the Finance Act, 2020, would take effect on the 18th of May, 2020.

(Note: Section 128 of the Finance Act of 2020 gives effect to the amended section 140 of the Central Goods and Services Tax Act of 2017, which establishes the time restriction for claiming the Act’s transitional input tax credit.)

September 10th, 2018

TRAN-1 and TRAN-2 due dates have been extended to March 31, 2019, and April 30, 2019, respectively, for some taxpayers who were unable to complete filing owing to a technical problem. Previously, by notification dated March 28, 2018, the TRAN-02 form submission deadline was extended until June 30, 2018.

How to claim ITC on old stock? Which form to choose TRAN 1 & TRAN 2?

Any business with a closing stock before GST, whether registered or not, will be able to claim a credit for tax paid under the pre-GST regime. This ITC claim is also subject to a few criteria, which we shall go over later.

The CBEC has developed two transition forms, TRAN 1 and TRAN 2, to enable businesses to shift seamlessly and carry forward their input tax credit.

Form type	Who can file	Who cannot file	When to file
TRAN 1	Under the old regime, registered people might be registered or unregistered.	Those who register as composition dealers under the GST	27th December 2017 **
TRAN 2	Persons who are GST-registered but are not GST-registered or are under the old regime A dealer or broker who does not have duty-paid documentation	An excise-registered manufacturer A service provider who has paid the service tax.	Monthly from July 2017 to December 2017

Note: TRAN 1 can only be changed once. There are no more modifications that can be made after the correction.

Broad aspects of the transition to TRAN 1 & TRAN 2GST

Aspects of transition are primarily concerned with

• The former regime’s input tax credit that you intend to claim in the new regime (report in TRAN-1)
• Minimize any disturbance to materials sent to personnel on the site ( report in TRAN-1)
• The major dealing and dispatch of commodities, as well as work contracts, should be reported to the reporting agency (report in TRAN -1)
• Refunds and claims from the previous regime (not reportable in TRAN -1 or TRAN -2)

Things to remember for transition to TRAN 1 & TRAN 2 GST

• Separate transition forms must be filed for each TRAN 1 & TRAN 2 GSTIN.
• Any credit you want to carry forward from the previous system must be GST-eligible as well.
• Credits from the previous regime can be applied to the GST. This is only possible if you have filed returns for the previous six months under the previous regime. As a result, you must properly file old VAT/ Excise/ Service Tax returns.
• All central taxes and charges, such as excise and service tax, would be passed forward to the CGST.
• Any state taxes, such as VAT, will be carried through to the SGST.

Information required in TRAN 1

Here’s a breakdown of the information needed in TRAN 1 by item.

1. GSTIN – Include your GSTIN number in your message.
2. Legal Name of Registered Person – Include your entire legal name.
3. Trade Name – If you’re utilizing a trading name, make sure to specify it.
4. Confirm that you have filed ALL of the returns required by law for the last six months– this is a yes/no question. Only if you filed returns for the preceding six months under the old regime can you use the closing balance of CENVAT/VAT credit from previous filings as a credit in your TRAN1 GST electronic ledger.
5. Tax credit carried over in a return filed under current legislation You must submit details of all the cenvat credits you intend to convert to TRAN 1 GST under this section.
6. The details to be provided are as under → 5a.5b.5c

a) Amount of cenvat credit carried over to the computerized credit ledger as central tax (Central Excise and Service Tax) Section 140(1) and Section 140(4) (a).

Applicable to a registered person who was registered under the old regime and filed returns under the old regime, excluding a person paying tax under the composition scheme. (The CGST Act, Section 140(1))

Under the prior regime, input credit relates to taxable supplies where the registered person provided/manufactured both taxable and exempted services/goods. (The CGST Act, Section 140(4)(a)).

The excise and service tax input credit amount reported in the return can be claimed by this person. If you are registered as a manufacturer or a service provider and have a closing balance of CENVAT credit in your return for the period ending June 30, 2017, you must file this table of TRAN 1.

The following information must be provided:

1st table input: serial number

Table input 2: Current law registration number (Central Excise and Service Tax) – enter your current law registration number for the central excise and service tax (both are unique 15 digit numbers)

Table input 3: Tax period for which the most recent return was filed under current legislation – provide the date range for your most recent return. For example, if you are an excise manufacturer, you must file ER-1 monthly and ER-3 quarterly. You must detail both of these returns filed in the previous six months in this section.

Table input 4: The date on which the return was filed, as provided in Table input 3. 3 – As previously said, provide the dates of the GST returns.

Table input 5: CENVAT balance carried forward from the previous return For each return, state the amount of CENVAT credit you have carried forward.

CENVAT credit allowed as ITC of central tax in accordance with transitional requirements (table input 6). Provide the amount of credit that you are eligible to carry forward from previous return forms.

b) Tax credit for C Forms, F Forms, and H/I Form that you desire to carry forward [this information must be submitted for the period April 1, 2015, to June 30, 2017].

Here’s a quick rundown of what these forms entail:

When an interstate sale is performed, a registered dealer (purchaser) issues a C Form to a registered seller. The Central Sales Tax (CST) is 2% on purchases made with a C form.

‘F Forms’ — These are used to make tax-free branch transfers. The branch office/consignment agent that receives goods as a branch/stock transfer issues an F Form to its head office/principal who is sending the goods. F forms are used by the head office/principal to establish that the goods sent are stock/branch transfers and not sales.

‘H/I Forms’ – utilized in the case of exports for purchases made locally without paying tax. When the buyer is an exporter, this form is used to make interstate purchases for export. The seller is not required to charge or pay any CST on the transaction if the exporter/buyer provides an H form.

Provide the following information for each of these forms: Name of Issuer Serial Number of Form Amount Applicable VAT TIN of Issuer Rate

c) State/UT Tax Credit for Pending C, F, and H/I Forms (For all registrations on the same PAN and in the same State) –

You must pay the differential tax if you are registered under any State VAT and have any outstanding C-Forms/F Forms/H or I Forms since you are not qualified to charge the concessionary CST rate. The difference in tax due will be deducted from the input tax credit balance in your most recent return, and the credit will be carried forward under the GST regime.

The following information must be provided:

• In column 1, write the state VAT registration number, i.e. the TIN.
• Enter the closing balance of the input tax credit in column 2 of the return for the period ending June 30, 2017.
• The Turnover for which the C-Form, F Form, and H/I Form are pending must be indicated in columns 3, 5, and 8.
• The differential tax on each respective Turnover must be recorded in columns 4, 6, and 9. (Eg: if concessional CST is 2 percent & VAT is 14.5 percent, then the differential tax rate is 12.5 percent ).
• This will be taken from the return’s closing balance of input tax credit and, as a result, from Column 2.
• You must enter the ITC that you reversed in columns 3 and 5 in column 7. This amount will be added to the amount in column 2 because it is eligible to be carried forward as an ITC under GST.
• The following formula is used to calculate Column 10:
• – Column number two – (4+6-7+9)
• This is the VAT/Entry tax balance ITC that would be allocated to you under the GST regime.

6. Details of capital items for which unveiled credit has not been carried forward (Section 140(2)) –

This necessitates the disclosure of any capital goods input credit that has not been claimed. Taxes paid on capital goods are frequently credited over several financial years. If you were unable to fully claim your tax input credit by the 30th of June, you can claim the remaining portion by reporting here.

Section 140(2) of the CGST Act pertains to the carry forward of CENVAT credit for capital employed that was not carried forward in the prior regime’s return. If you brought a cenvat credit forward from a previous return, it will be included in 5a. above.

This information is required under sections 6a. and 6b. below.

a) The percentage of the unclaimed input tax credit on capital items that is subject to the Central Tax Amount of unavailed CENVAT credit for capital items that you want to carry forward to your electronic ledger as central tax (CENVAT, Excise, Countervailing Duty, or Special Additional Duty) (Central Taxes)

You must fill in the specifics of the unavailed cenvat credit of Excise Duty, SAD, or CVD of Capital goods in this table –

• Enter the capital good’s invoice number and date in columns 2 and 3.
• In column number 4, the supplier’s registration number under the old regime, which is the ECC number, must be provided.
• Enter your registration number in column 5, which is either your service tax registration number or your ECC number.
• Enter the capital good’s worth in column 6, the excise duty or CVD paid in column 7, and the SAD paid in column 8.
• In column 9, insert the CENVAT Credit that was available in the previous system. The total of Columns 7 and 8 cannot be more than this amount.

• Column 10 must include the CENVAT Credit that was previously claimed under the former regime. This amount must not be greater than the figure in Column 9.
• The residual or unavailed CENVAT Credit, which is reflected in Column No 11, is the balance CENVAT Credit eligible as ITC of Central Tax (Column No 9 less Column No 10).

b) The percentage of the unclaimed input tax credit on capital items that are taxed by the state/UT Amount of unredeemed input tax credit carried over to the computerized credit ledger as State/UT tax (for all registrations with the same PAN and in the same state) – You must fill in the details of any unclaimed cenvat credit of VAT or Entry Tax (State/UT Tax) for capital items in this table –

• Enter the invoice number and date of the capital good in Columns 2 and 3.
• In Column 4, the supplier’s registration number under the applicable state VAT, i.e. the TIN Number, must be provided.
• Your (recipients’) registration number must be entered in Column 5. Enter your TIN, which is your VAT registration.
• Fill in the value of the Capital Good in column 6 and the VAT or entry tax paid on the capital good in column 7.
• Enter the total VAT and entry tax credit that was allowed under the applicable State VAT Act in column 8. This number can’t be more than the total of Column 7’s totals.
• Column 9 must include the total VAT/entry tax credit already claimed under the old regime. This number must not be greater than the figure in Column 8.
• The remaining or balance State VAT/Entry Tax credit acceptable as SGST/UTGST in the GST Regime, which is indicated in Column 10, is the balance unavailed credit of VAT and entry tax, i.e. Column 8 minus Column No 9.

7. Inputs retained in stock in accordance with sections 140(3), 140(4)(b), and 140(5) (6)

A manufacturer or dealer who was previously unregistered and/or trading in exempted items might use this clause to receive an input tax credit. This section requests information on inputs kept as stocks. This section of TRAN-1 primarily pertains to a GST-registered firm, however

• Such a business was not required to be registered under the previous regime, or
• it was manufacturing exempted goods or providing exempted services, or
• it was providing works contract service and taking advantage of abatement (builders), or
• it was a first-stage dealer or a second-stage dealer, or
• it was a registered importer, or
• it was a manufacturer’s depot.

[Any of the above statements could be correct. These are based on the CGST Act’s Section 140(3).]

It also applies to someone who produces both taxable and exempt items or offers both taxable and exempt services. And there is a tax on stock/inputs that were used for exempted supplies under the previous regime but are now taxable under the GST.

[As per the CGST Act’s section 140(4)(b)] Also applicable to a person who was formerly registered as a composition dealer (paying a fixed rate or amount of tax) but is now a regularly registered taxpayer under the GST. When these conditions are met, all of the above-mentioned individuals can claim credit for eligible taxes paid on equities they own:

• the stock is being used or will be used to make taxable supplies under the GST regime.
• The input credit is GST-eligible.
• They have invoices or other documents proving payment of duty for such inputs under the former regime;
• These invoices or documents are not older than 12 months counting backward from June 30, 2017
• The services provider is not entitled to any GST abatement
• They have chosen not to use a composition method.

In a nutshell, these are those who owned stock on June 30, 2017, but were unable to claim credit for it through returns that were already specified in FORM GST TRAN -1, section 5a.b. or c. ( see above).

a) Claims for input credit other than those listed in 5a.

Provide the following HSN Unit Quantity Value (at the 6 digit level): Duties payable on such inputs that are eligible

Where duty-paid invoices or other papers are available to be filled for inputs or inputs contained in semi-finished and finished items by a manufacturer or service provider in order to claim an input tax credit of excise duty or service tax as an input tax credit of CGST, Part 7A is applicable.

Part 7B is only to be completed by individuals who are not manufacturers or service providers who were unregistered under the previous system – in other words, it is to be completed by dealers or traders to provide information on inputs in the absence of duty paid invoices or documentation. This person must also complete TRAN-2, which we will go over later.

b) Where records of tax payment are available, VAT and entrance tax paid on inputs or input services would be carried forward as SGST/UTGST:

When an input or input service is received on or after July 1, 2017, yet the supplier paid the duty or tax under the previous system. When an invoice is recorded in the books within 30 days of the 1st of July, a registered person can claim credit for relevant duties and taxes paid. (The Commissioner of GST has the authority to extend the period by another 30 days.) Section 140(5) of the CGST Act applies to this case, and the following information must be provided.

• In column 1, the supplier’s name must be mentioned.
• Fill in columns 2 and 3 with the invoice number and date, accordingly.
• In columns 4-7, provide the specifics of the supply, including the description, amount (if products), unit of measurement (if goods), and taxable value.
• The eligible duties must be entered in column 8.
• The VAT/Entry Tax on such goods must be entered in column 9.
• The date on which an entry in the books of account of such transaction was made must be written in the last column. [You are not eligible for an input credit if it is after 30 days (or any extension allowed up to 30 days) from July 1st.]

c) Amount of VAT and entry tax paid on inputs supported by invoices/documents proving tax payment carried forward to electronic credit ledger as SGST/UTGST under sections 140(3), 140(4)(b), and 140(4)(c) (6)

• The details of the stock such as the description, unit, the number of goods held, the value of the goods & the State Tax(VAT or Entry Tax) must be provided in columns 1-5

• In column 6, insert the entire input tax credit previously claimed under the prior regime.
• The input tax related to exempt sales (old regime) that are chargeable under GST must be filed in column 7.
• This input tax credit would not have been available under the previous regime, but it is now available if the items are taxable or if a composition dealer registered under the previous regime is now registering as a regular taxpayer.
• The remaining balance will be eligible for SGST/UTGST input credit in column 8.

d) Stock of goods not backed up by invoices/documents proving tax payment (for only those states having VAT at a single point)

If you are a merchant or dealer who was unregistered under the old regime and does not have an invoice or other prescribed documentation demonstrating payment of VAT/Entry Tax that will be claimed as ITC of SGST after filing FORM GST TRAN – 2, you must fill out this section. This table cannot be filled by a manufacturer or a service provider. This also applies to states where VAT must be paid at a single location. (i.e., the maker or importer pays the tax) as in Punjab. Please provide the following information: Unit Quantity Value Tax Paid Description

8. Under present law (Section 140(8)), details of cenvat credit transfer for registered persons with centralized registration.

This rule applies to the transfer of service tax input tax credits. The following information is necessary.

• Provide the registration number for the service tax (column 2)
• The tax period is covered by the most recent service tax return ST-3, which is April to June 2017. (column 3)
• The deadline for filing taxes for the months of April to June 2017. [The deadline for filing the return is August 15, 2017]. (fourth column)
• The ST-3 return for April-June 2017 carried forward the closing balance of CENVAT credit.
• This credit can be transferred to any registered individual with the same PAN for whom the prior regime’s centralized registration was obtained. (column 5) (column 6) (column 7)
• The GSTIN of all branches (receivers) with a centralized service tax registration and the same PAN to whom the credit is transmitted. (column 6) (column 7) (column 8) (
• In order to disburse the credit, a document must be issued. • Mention the document number in column 7 and the date of the document in column 8. • Mention the input tax credit of central tax transferred to each branch in column 9. Column 9’s total must not exceed column 5’s total.

9. Information about products provided to a job worker and stored in his stock on behalf of the principal under section 141 a) Sent as principle A principal who has sent products to a worker on the job must fill out a form –

• If the job worker is registered for GST, provide his GSTIN.
• In Column 2, write the unique number of the challan issued while transferring the products to the job worker, as well as the challan date. • In Column 3, write the sorts of commodities – whether they are inputs, semi-finished goods, or finished goods.
• In columns, 5-9, include additional information such as the HSN code of the stock held by the Job worker, the description, the unit of measurement (e.g., kgs, boxes, tonnes), the quantity, and the stock’s worth.

b) Employed as a laborer If you are a job worker, you must provide the Principal with information on the things you have on hand in 9 days (b) –

• If the Principal is registered for GST, provide his GSTIN.
• In Column 2, provide the unique no. of the challan issued while transferring the goods to Principal, as well as the challan date. • In Column 4, specify the sorts of products – whether they are inputs, semi-finished goods, or finished goods.
• In columns 5-9, include additional information such as the HSN code of the stock held by the Job worker, the description, the unit of measurement (e.g., kgs, boxes, tonnes), the quantity, and the stock’s worth.

10. Under section 142(14) of the SGST Act, details of commodities kept in stock as agents for the principal. According to Section 142(14), if any goods or capital goods belonging to the principal are lying at the agent’s premises on the specified day, the agent can claim a credit for the tax paid on those goods or capital goods if he meets the following criteria:

(i) The agent is GST-registered.

(ii) On June 30, 2017, both the principal and the agent shall declare the specifics of any stock of goods or capital goods held by the agent.

(iii) invoices for such products or capital goods were issued within the previous 12 months of July 1, 2017.

(iv) the principal has either reversed (where an input tax credit was claimed) or failed to claim the input tax credit for such goods or capital goods.

a) Information on the things you’re holding as an agent for If you are an agency, you must report information of unsold stock held on behalf of the Principal as of June 30, 2017, in Serial No 10 (a) –

• Fill up Column 2 with the Principal’s GSTIN.
• Fill in the blanks in Columns 3-7 with information on the stock you have, such as the description, the unit of measurement (kgs, boxes, tonnes), the quantity of stock you have, the value of the stock, and the input tax you will pay on it.

b) The agent holds the goods sent as principal. If you are a principal, you must provide the details of the stock you provided to the agency and the stock that was unsold as of June 30, 2017, in Serial No 10 (b) –

• Fill up Column 2 with the Principal’s GSTIN.
• Fill in the blanks in Columns 3-7 with information on the stock you own, such as the description, the unit of measurement (for example, kgs, boxes, or tonnes), the quantity you own, the stock’s value, and the input tax due to your agent.

11. Credit details as per Section 142(11) (c) — If a works contractor pays both VAT and Service Tax on a supply, GST will be levied, and he will be entitled to obtain credit for VAT and Service Tax paid to the number of supplies made after July 1, 2017. You must provide information in this section:

• In column 1, enter your registration number or TIN (State VAT registration number); in column 2, enter your Service Tax Registration Number; and in columns 4 and 5, enter your invoice number and invoice date.
• He must enter the GST he paid in column 6.
• In the last column, the VAT and Service Tax he paid on supplies made after July 1, 2017 are claimed as SGST and CGST ITCs, respectively.

12. Information on items sent for approval six months before July 1, 2017 (Section 142(12))

This applies to items shipped on a pre-approval basis no early than 6 months prior to July 1, 2017. The following information is necessary –

• The document number on which the goods are transferred is listed in column 2.
• The document date (column 3) is the date on which the items are sent.
• If appropriate, enter the GSTIN of the receiver of the goods in column 4.
• In column 5, write the name and address of the person who will receive the items.
• Details of such items, such as the HSN Code, the description of the goods, the unit, such as Kgs/Mtr, the number of goods transferred, and finally the total value of goods delivered, are listed in columns 6-10.

Filing TRAN 2

A dealer or business who has registered for GST but was unregistered under the previous regime might complete Form TRAN – 2. TRAN -2 can be used by a dealer who does not have a VAT or excise invoice for stocks kept on June 30, 2017, to claim the tax credit on the stock. Form GST TRAN – 2 cannot be filed by a manufacturer or service provider. When stock is sold, a dealer or trader must complete a TRAN-2 at the end of each month, providing the information in order to collect input tax credit. He must fulfill the following requirements –

• These products were not totally exempt from excise/VAT or were not nil-rated goods under Excise/VAT.
• This program is only valid for 6 months starting July 1, 2017, which means that stock must be cleared by the end of December to be eligible for a credit.
• You have paperwork proving the purchase of such things.
• The goods for which the credit is being claimed are stored in a way that allows them to be easily identified.

Details to be filled in TRAN 2

• GSTIN: Enter your GSTIN.
• Name of Taxable Person: Fill in this field with the name of the taxable person.
• Details of inputs held in stock on July 1st for which you do not have an invoice/document evidencing tax payment carried forward to electronic credit ledger

Stock held without a supporting document proving excise duty payment (Central Tax) If you do not have a document proving that you have paid Excise Duty, you must fill in the following information: In this section, you must provide the following information about the Stock:-

• In column 1, the HSN code of the opening stock for the month
• In column 2, the unit of measurement of the opening stock for the month
• In column 3, the quantity of opening stock for the month
• In column 4, the number of goods sold in the month
• In column 5, the taxable value of goods sold for the month
• In column 6, if goods sold intrastate, mention CGST
• In column 7, if goods are sold interstate, mention the amount of IGST paid
• In column 8, seek credit of central tax (CGST input credit).
• If the CGST paid in column 6 is higher than 9%, the ITC to be claimed is 60% of the CGST paid in column 6. If not, it will be 40% of column 6.
• If the IGST paid in column 7 is 18% or higher, the ITC to be claimed is 30 percent of the IGST paid in column 7. If not, it will be 20% of column 7.
• In column 9, reduce the value in column 4 from the value in column 3 to get the quantity of opening stock for the applicable tax period. (column number 4 minus column number 3)

Under the pre-GST regime, the ITC for capital goods was not accessible to taxpayers in full during the purchase of such goods. If a registered person purchases capital goods but is unable to claim the full amount of tax paid at the time of purchase, the leftover ITC may be claimed under GST. Specify the following details for each capital good, invoice-by-invoice:

1. the total Cenvat Credit used in such capital goods
2. the amount of ITC taken or used up until July 1st
3. the amount of ITC that has not been claimed or used as of July 1st

Stock held being sent or received for job work

When a principal manufacturer sends products for job work to a job worker and those goods are still with the job worker on July 1st, it is considered a stock retained by the principal manufacturer for tax credit purposes. Both the major manufacturer and the job worker for items must file the information.

1. Employed by the principal as a job worker
2. As a principle, send to a job worker for job work.

The following are the essential details to include in the form:

• The date and number of the challan
• GSTIN of manufacturer or job worker
• Type of products (raw material, semi-finished/finished items)
• Description of goods (HSN, unit, amount, value)

Goods sent to agent or consignment dealer for sale

When a primary dealer or manufacturer sends his or her goods to an agent or consignment dealer for sale and the stock is still with the agent or consignment dealer on July 1st, it is considered a stock owned by the principal dealer or manufacturer for tax credit purposes. Both the principal dealer or manufacturer and the agency or consignment dealer for goods must file the information.

1. Acting on behalf of the principal as an agent or consignment dealer
2. Send by principle dealer or manufacturer to agency or consignment dealer

The following are the essential details to include in the form:

• GSTIN of the major dealer or manufacturer
• Goods description (unit, quantity, value, and ITC to be claimed)

The tax paid on items purchased and held in closing stock as of the designated date will be credited to the registered person under GST. Credit will be permitted based on the rate of IGST, CGST, and SGST of the closing stock under GST according to the HSN code since it does not have an invoice or other papers demonstrating payment of taxes under the VAT Act, Central Excise. When a taxpayer sells items held as closing stock as of June 30, he must first pay the applicable taxes on the outward supply before being eligible for an ITC depending on the rate of tax paid on that outward supply.

Mr. Avinash, for example, has 1000 units of umbrellas in his closing stock as of June 30th. Now, on the 15th of July, he offers 100 umbrellas for Rs.100 each, with a 12 percent IGST.

Rs. 10,000/- is the taxable value. Rs. 1,200/- as a tax amount

Because the IGST rate is now less than 18%, ITC will be allowed at a rate of 20%. As a result, the ITC allowed will be 20% of Rs 1,200/-, or Rs 240/-.

From the designated date, i.e. July 2017 to December 2017, a registered person can claim ITC credit in the above manner for six tax periods. By the conclusion of the tax period, a statement indicating the details of the supply in Form TRAN 2 must be filed for each such period.

Conditions to be fulfilled to claim credit of Central Tax and State tax- Applicable in case of States offering Tax on MRP Scheme.

• Such products were not entirely free from Excise Duty or Nil rated or under the appropriate State VAT Act, and the central tax or state tax due on such supply has been paid.
• the registered individual has the necessary documentation for the purchase of such products.
• in FORM TRAN-2, provide the details of stock held at the conclusion of each of the six tax periods, including the specifics of such products supplied throughout the time.
• The Electronic Credit Ledger will be credited with the amount of credit allowed.
• the products on which the credit is granted are stored in such a way that the registered person may easily identify them.

Read, also: Impact of GST on works contract
CGST Rules: Chapter 5 – Input Tax Credit