Notification No.: 10/2020 – Central Tax
Date of Notification: 21st March 2020
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 2(106) – Definition of “tax period”
- Section 39 – Furnishing of returns
- Section 148 – Special procedure for certain registered persons
Summary of Notification
Special Transitional Procedure for UT Merger of Daman & Diu with Dadra & Nagar Haveli:
The Government notified a special compliance procedure for registered persons whose principal place of business was located in the erstwhile Union Territories (UTs) of Daman and Diu or Dadra and Nagar Haveli before 26th January 2020, and which were merged into a single UT from 27th January 2020.
Key Transitional Provisions (valid till 31st May 2020):
- Redefinition of Tax Periods (for Return Filing):
- January 2020: 1st to 25th January 2020
- February 2020: 26th January to 29th February 2020
This adjustment ensures accurate tax computation across the UT merger timeline.
- Tax Payment Despite Invoice Place of Supply Mismatch:
Registered persons must pay tax correctly in their return under Section 39, even if invoices raised from 26th January to 31st May 2020 carry pre-merger state details. - ITC Transfer Option (Between GSTINs of Merged UTs):
Persons with old GSTINs in the former UTs may opt to transfer input tax credit (ITC) to their new GSTIN in the merged UT. The procedure includes:
- Intimation to jurisdictional officers within one month of new registration
- Debit of ITC from old GSTIN’s credit ledger using Table 4(B)(2) of GSTR-3B
- Credit to new GSTIN using Table 4(A)(5) of GSTR-3B
- Treatment of UT Tax Balances:
Balances in UT taxes in the electronic credit ledger of Daman and Diu as on 25th January 2020 shall be deemed as balances in the new merged UT ledger.
