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

Notification No. 10/2020 – Central Tax

G.S.R……(E). –  In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Government, on the recommendations of the Council, hereby notifies those 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 26th day of January 2020; and is in the merged union territory of Daman and Diu and Dadra and Nagar Haveli from the 27th day of January 2020 onwards, as the class of persons who shall, except as respects things done or omitted to be done before the notification, follow the following special procedure till the 31st day of May 2020 (hereinafter referred to as the transition date) as mentioned below. 

2. The said registered person shall,

(i) ascertain  the  tax  period  as  per  sub-clause  (106)  of  section  2  of  the  said  Act  for the purposes  of  any  of  the  provisions  of  the  said  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 said 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 has an  option  to  transfer the balance of input  tax  credit (ITC) after the filing of the return for January 2020, from the  registered Goods  and Services  Tax  Identification  Number (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 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 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.

3. 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 25th day of January 2020, shall be transferred as the balance of Union territory tax in the electronic credit ledger.

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