The CBIC issued Notification No. 10/2020- Central Tax dated March 21, 2020 to give effect to GST Council recommendations made during its 39th meeting with respect to persons whose principal place of business or place of business was in the erstwhile Union territory of Daman and Diu or in the erstwhile Union territory of Dadra and Nagar Haveli till the January 26, 2020 and 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 special procedure till May 31, 2020 (“transition date”).
The said registered person shall,-
(i) ascertain the tax period as per sub-clause (106) of Section 2 of the CGST Act for the purposes of any of the provisions of the CGST Act for the month of January, 2020 and February, 2020 as below:-
(a) January, 2020: 1st January, 2020 to 25th January, 2020;
(b) February, 2020: 26th January, 2020 to 29th February, 2020;
(ii) 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 under Section 39 of the CGST Act;
(iii) who have registered Goods and Services Tax Identification Number (“GSTIN”) in the erstwhile Union territory of Daman and Diu and the erstwhile Union territory of Dadra and Nagar Haveli till the 25th day of January, 2019 have an option to transfer the balance of input tax credit (“ITC”) after the filing of the return for January, 2020, from the registered GSTIN in the erstwhile Union territory of Daman and Diu 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 in the erstwhile Union territory of Daman and Diu, for the tax period immediately before the transition date;
(c) the transfer of ITC shall be carried out through the return under Section 39 of the CGST Act for the tax period immediately before the transition date and the transferor GSTIN shall debit the said ITC from its electronic credit ledger in Table 4(B)(2) of FORM GSTR-3B and the transferee GSTIN shall credit the equal amount of ITC in its electronic credit ledger in Table 4(A)(5) of FORM GSTR-3B.
Further, 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 the January 25, 2020, shall be transferred as balance of Union territory tax in the electronic credit ledger.
Read more at: http://egazette.nic.in/WriteReadData/2020/218849.pdf