Key points
- TRAN-1 carried closing credits and credit on stock from the old laws into GST.
- TRAN-2 was for businesses that held stock without duty-paid invoices and claimed credit based on later sales.
- The original deadline was in December 2017; later extensions were given for technical problems.
- After a Supreme Court order, the portal reopened from 1 September to 31 October 2022 for missed claims.
- The 2017 transition windows are closed. This guide is for understanding old records, assessments and disputes, and for lessons that still apply when tax rules change.
Why transition forms were needed
On 30 June 2017, many businesses had unused CENVAT credit in their excise or service tax accounts and unused VAT credit in their state VAT accounts. They also had stock on which tax had been paid. Without a way to carry this into GST, that tax would have been lost. Section 140 of the CGST Act allowed it to move across, and the TRAN forms were the way to claim it.
TRAN-1: what it covered
- Closing CENVAT credit from the last excise or service tax return, carried into CGST.
- Closing VAT credit from the last state VAT return, carried into SGST.
- Unavailed credit on capital goods not yet taken under the old law.
- Credit on stock held on 30 June 2017, for businesses not registered under the old law or dealing in exempt goods, where duty-paid documents were available.
- Goods and services in transit on the appointed day.
- Goods with job workers and goods held as an agent.
Conditions applied: the credit had to be allowed under GST, the business had to have filed its old returns for the six months before GST began, and stock invoices generally had to be issued within the 12 months before 1 July 2017. See our guide to Section 140 transition provisions for the details.
TRAN-2: deemed credit without invoices
Some traders held stock on which tax had been paid somewhere up the chain, but did not have duty-paid invoices to prove it. TRAN-2 let them claim a deemed credit, calculated as a percentage of the GST paid when they sold that stock, for a limited number of tax periods after GST started. The stock first had to be declared in TRAN-1.
Deadlines and the Supreme Court window
| Period | What happened |
|---|---|
| July–December 2017 | TRAN-1 filing window, extended up to 27 December 2017. |
| 2018–2020 | Further chances for businesses that could show the portal failed them, through an IT grievance process. |
| July 2022 | The Supreme Court directed that the portal be reopened for all taxpayers to file or revise TRAN-1 and TRAN-2. |
| 1 September–31 October 2022 | The special window. Claims filed were then checked by tax officers. |
| Today | No window is open. Claims are dealt with through assessments, verification and appeals. |
Common reasons TRAN claims were questioned
| Reason | What it means |
|---|---|
| Closing credit not matching the old return | The amount carried forward was more than the closing balance shown in the last excise, service tax or VAT return. |
| Old returns not filed | Returns for the six months before GST were missing, which was a condition for carrying credit forward. |
| Credit not allowed under GST | Credit on items blocked under GST, such as certain vehicles, could not be carried forward even if allowed earlier. |
| Stock invoices too old | Credit on stock was claimed on invoices issued more than 12 months before 1 July 2017. |
| Same credit claimed twice | Credit was claimed in TRAN-1 and also through another route, or by both a head office and a branch. |
| Late or incomplete filing | The form was filed after the deadline without a recognised reason, or parts were left blank and filled later. |
Most of these come down to records. Where the business could show its returns, stock statement and invoices clearly, claims usually held up.
Why TRAN claims still matter
- Verification: officers continue to verify transition credit, especially large claims and those filed in 2022.
- Demands: credit found ineligible can be demanded back with interest.
- Litigation: many disputes about transition credit are still in appeal.
- Records: businesses need to keep old returns, stock statements and invoices that support their claims.
The 2017 transition windows are closed. This guide is for understanding old records, assessments and disputes, and for lessons that still apply when tax rules change.
What to keep on file
- Old returns The last excise, service tax and VAT returns showing closing credit.
- Stock statement Stock held on 30 June 2017, with values.
- Invoices Duty-paid invoices for stock and capital goods claimed.
- TRAN forms Copies of TRAN-1 and TRAN-2 as filed, and any revisions.
- Correspondence Notices, replies and orders about the claim.
This guide explains GST rules in simple words and reflects the law as we understand it on 28 October 2026. Rules, rates and dates change, so please confirm with your CA or the official notifications before acting on it.