CBIC provides special procedure for taxpayers in Dadra and Nagar Haveli and Daman and Diu consequent to merger of the two UTs

Mar 31, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Central Board of Indirect Taxes and Customs (CBIC) on March 23, 2020, provides special procedure for taxpayers in Dadra and Nagar Haveli and Daman and Diu consequent to merger of the two Union Territories (UTs).

CBIC notifies those persons whose principal place of business or place of business is in the merged Union territory of Daman and Diu and Dadra and Nagar Haveli from January 27, 2020 onwards, as the class of persons who shall, follow the following special procedure till May 31, 2020 as mentioned below:

The registered person shall:

 ascertain the tax period for the month of January, 2020 and February, 2020 as below:

(a) January, 2020: January 01, 2020 to January 25, 2020;

(b) February, 2020: January 26, 2020 to February 29, 2020;

 irrespective of the particulars of tax charged in the invoices, or in other like documents, raised from the 26th January, 2020 till the transition date, pay the appropriate applicable tax in the return.

 who have registered Goods and Services Tax Identification Number (GSTIN) in both the UTs till January 25, 2019 have an option to transfer the balance of input tax credit (ITC) after the filing of the return for January, 2020, to the registered GSTIN in the new Union territory of Daman and Diu and Dadra and Nagar Haveli 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 balance in the electronic credit ledger upon filing of the return, for the tax period immediately before the transition date;

(c) the transfer of ITC shall be carried out through the return for the tax period immediately before the transition date and the transferor GSTIN will debit the said ITC from its electronic credit ledger in Table 4(B)(2) of FORM GSTR-3B and the transferee GSTIN will credit the equal amount of ITC in its electronic credit ledger in Table 4(A)(5) of FORM GSTR-3B.

The balance of Union territory taxes in electronic credit ledger of the said class of persons, whose principal place of business lies in the Union territory of Daman and Diu, as on January 25, 2020, will be transferred as balance of Union territory tax in the electronic credit ledger.

[Notification No. 10/2020 – Central Tax]


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