The Central Board of Indirect Taxes and Customs (CBIC) has notified Transition Plan under Goods and Services Tax ( GST ) for those persons whose principal place of business or place of business lies in the erstwhile State of Jammu and Kashmir till the 30th day of October, 2019; and lies in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from the 31st day of October, 2019 onwards.
As per the notification No. 62/2019 – Central Tax, a special procedure shall be followed till December 31, 2019 by the persons of Jammu and Kashmir states in respect of the transfer of the period of return filing, payment of tax, Input Tax Credit (ITC), etc.
- Period of Return Filing:
For the purposes of any of the provisions of the said Act for the month of October, 2019 and November, 2019 as below:
(a) October, 2019: 1st October, 2019 to 30th October, 2019;
(b) November, 2019: 31st October, 2019 to 30th November, 2019;
- Payment of Tax:
Notification said that irrespective of the particulars of tax charged in the invoices, or in other like documents, raised from 31st October, 2019 till the transition date, The taxpayers are required to pay the appropriate applicable tax in the return under section 39 of the said Act;
- Input Tax Credit (ITC):
The special procedure shall include that the taxpayer has an option to transfer the input tax credit (ITC) from the registered Goods and Services Tax Identification Number (GSTIN), till the 30th day of October, 2019 in the State of Jammu and Kashmir, to the new GSTIN in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from the 31st day of October by following the procedure as below:
(a) the said class of persons shall intimate the jurisdictional tax officer of the transferor and the transferee regarding the transfer of ITC, within one month of obtaining new registration;
(b) the ITC shall be transferred on the basis of the ratio of turnover of the place of business in the Union territory of Jammu and Kashmir and in the Union territory of Ladakh;
(c) the transfer of ITC shall be carried out through the return under section 39 of the said Act for any tax period before the transition date and the transferor GSTIN would be debiting the said ITC from its electronic credit ledger in Table 4 (B) (2) of FORM GSTR-3B and the transferee GSTIN would be crediting the equal amount of ITC in its electronic credit ledger in Table 4 (A) (5) of FORM GSTR-3B.
Further, it has been added that the balance of State taxes in electronic credit ledger of the said class of persons, whose principal place of business lies in the Union territory of Ladakh from the 31st day of October, 2019, shall be transferred as the balance of Union territory tax in the electronic credit ledger.
However, it should be noted that the provisions of clause (i) of section 24 of the said Act shall not apply on the said class of persons who are making inter-State supplies between the Union territories of Jammu and Kashmir and Ladakh from the 31st day of October, 2019 till the transition date.
Download Notification: notfctn-62-central-tax-english-2019