Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 62/2019-Central Tax dated 26th November, 2019 to notify the class of persons whose principal place of business or place of business lies in the erstwhile State of Jammu and Kashmir till October 30, 2019 and lies in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from October 31, 2019 onwards who shall follow special procedure in respect of transfer of ITC, payment of tax, period of return filing etc. under GST as laid below till 31st day of December, 2019.

Key points of Notifications are:

1. Those persons whose principal place of business or place of business lies in the erstwhile State of Jammu and Kashmir till the 30th day of October, 2019; and lies in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from the 31st day of October, 2019 onwards shall follow the following special procedure till the 31st day of December, 2019 (hereinafter referred to as the transition date), as mentioned below –

      (i) Ascertain the tax period for the month of October, 2019 and November, 2019 as below-

(a) October, 2019: 1 st October, 2019 to 30th October, 2019;

(b) November, 2019: 31st October, 2019 to 30th November, 2019;

(ii) irrespective of the particulars of tax charged in the invoices, or in other like documents, raised from 31st October, 2019 till the transition date, pay the appropriate applicable tax in the return      under Section 39 of the Act.

(iii) have an option to transfer the input tax credit (ITC) from the registered Goods and Services Tax Identification Number (GSTIN), till the 30th day of October, 2019 in the State of Jammu and Kashmir to the new GSTIN in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from the 31st day of October by following the prescribed procedure-

1. 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
2. The ITC shall be transferred on the basis of ratio of turnover of the place of business in the Union territory of Jammu and Kashmir and in the Union territory of Ladakh
3. The transfer of ITC shall be carried out through the return under section 39 of the said Act for any tax period before the transition date and the transferor GSTIN would be debiting the said ITC from  its electronic credit ledger in Table 4 (B) (2) of FORM GSTR-3B and the transferee GSTIN would be crediting the equal amount of ITC in its electronic credit ledger in Table 4 (A) (5) of FORM GSTR-3B.

2. The balance of State taxes in electronic credit ledger of the said class of persons, whose principal place of business lies in the Union territory of Ladakh from the 31st day of October, 2019, shall be transferred as balance of Union territory tax in the electronic credit ledger

3. The provisions of clause (i) of section 24 i.e. provisions of compulsory registration shall not apply on the said class of persons making inter-State supplies between the Union territories of Jammu and Kashmir and Ladakh from the 31st day of October, 2019 till the transition date

Source: Central Board of Indirect Taxes & Customs

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