Rule 118 - Declaration to be made under clause (c) of sub-section (11) of section 142

Section 118: Declaration Requirement for Certain Tax Provisions

Under Section 142(11)(c), certain individuals are required to submit a declaration if they fall under this provision. This must be done within the timeframe specified in Rule 117, or within any additional time allowed by the Commissioner. The declaration should be submitted electronically using FORM GST TRAN-1. This form requires individuals to detail the proportion of supply on which Value Added Tax (VAT) or service tax was paid before the appointed day, even though the actual supply was made after this day. Additionally, it must include the Input Tax Credit that can be claimed on these transactions. This process ensures that tax credits are accurately accounted for during the transition to the new tax regime. The goal is to provide a clear record of tax payments and credits during the period when the GST system was being implemented.