CBIC extends Date of Transition under GST of Daman & Diu and Dadra & Nagar Haveli till July 2020

The Central Board for Indirect Taxes and Customs (CBIC) has extended the date of transition under the Goods and Service Tax on the merger account of erstwhile Union Territories of Daman and Diu & Dadar and Nagar Haveli till July 31 2020.

Earlier, the Central Board of Indirect Taxes and Customs (CBIC) had notified a special procedure for the registered taxpayers in Daman & Diu and Dadra & Nagar Haveli during the transition period following the merger of these two union territories, w.e.f. January 26, 2020, and the transition is completed by May 31, 2020.

The Board, as per the Notification, said:

- The taxpayers should follow this special procedure till May 31, 2020, except for the items done or omitted to be done before the notification. 

- For the registered taxpayers, the tax period for the month of January should be from January 1 to January 25 and for the month of February should be January 26 to February 29.

- The taxpayers should pay the appropriate applicable tax in the return under section 39 of the said Act, irrespective of tax charged in the invoices from January 26, 2020, till the transition date.

Regarding the input tax credit, the notification prescribes the following; 

a. The taxpayers should 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 should be transferred on the basis of the balance in the electronic credit ledger upon the 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 should be carried out through the return under section 39 of the said Act for the tax period immediately before the transition date.

d. The transferor GSTIN should debit the said ITC from its electronic credit ledger in Table 4(B)(2) of FORM GSTR-3B and the transferee GSTIN should credit the equal amount of ITC in its electronic credit ledger in Table 4(A)(5) of FORM GSTR-3B.