Following the merger of two union territories, Dadra and Nagar Haveli & Daman and Diu, the Central Board of Indirect Taxes and Customs ( CBIC ) has notified a special procedure for the registered persons in these places during the transition period.
These union territories were merged w.e.f. 26.01.2020 and the transition to be completed by 31.05.2020.
As per the Notification, the Board said that as the class of persons who shall, except as respects things done or omitted to be done before the notification, follow the special procedure till the 31st day of May, 2020.
For the registered persons, the tax period for the month of January and February shall be from 1st January to 25th January and 26th January to 29th February.
“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 said Act,” the notification said.
Regarding the input tax credit, the notification prescribes the following; (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 said 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.To Read the full text of the Notification CLICK HERE