Important Keyword: Notification No. 10/2020 – Central Tax, GST UT merger, Daman & Diu GST, Dadra & Nagar Haveli GST, ITC transfer GST, GST special procedure UT merger, Section 148 CGST,
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[F. No.20/06/03/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 21st March, 2020
Notification No. 10/2020 – Central Tax: Seeks to provide special procedure for taxpayers in Dadra and Nagar Haveli and Daman and Diu consequent to merger of the two UTs.
GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
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:-
- January, 2020: 1st January, 2020 to 25th January, 2020;
- 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 have 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:-
- 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;
- 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;
- 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 balance of Union territory tax in the electronic credit ledger.
(Pramod Kumar)
Director,
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 10/2020 – Central Tax
Q1: What is Notification No. 10/2020 – Central Tax in simple language?
Answer:
It is a government notification issued to help GST taxpayers seamlessly shift when Dadra & Nagar Haveli and Daman & Diu merged. It explains new tax periods, ITC transfer rules, and how to file returns correctly. It was issued using Section 148 of CGST Act to prescribe a special procedure.
Q2: Who must follow Notification No. 10/2020 – Central Tax?
Answer:
Any taxpayer whose principal place of business was in either erstwhile UT (Daman & Diu, Dadra & Nagar Haveli) before 26 Jan 2020, and who later operated in the merged UT from 27 Jan 2020, must follow it.
Q3: Do I need a new GSTIN after the merger of both UTs?
Answer:
Yes. All businesses were issued a new GSTIN under the merged UT jurisdiction.
Need help with registration?
👉 https://finodha.in/online-gst-registration/
Q4: How should I split the tax period for Jan and Feb 2020?
Answer:
As per the notification:
Jan 2020 → 1 Jan to 25 Jan
Feb 2020 → 26 Jan to 29 Feb
These must be followed for GSTR-3B and GSTR-1.
Q5: What if invoices after 26 Jan 2020 still show old UT address?
Answer:
No problem!
You only need to ensure correct GST is paid in GSTR-3B, regardless of invoice particulars.
Q6: How do I transfer ITC from old GSTIN to new GSTIN?
Answer:
3-step process:
File Jan 2020 GSTR-3B under old GSTIN
Inform both jurisdictions
Transfer using: Debit (old GSTIN): GSTR-3B Table 4(B)(2)
Credit (new GSTIN): GSTR-3B Table 4(A)(5)
This must be done within 1 month of getting the new GSTIN.
If you want professional help:
👉 https://finodha.in/gst-compliance/
Q7: Can I transfer UT Tax credit also?
Answer:
Yes.
UT Tax credit as on 25 Jan 2020 is automatically moved to the merged UT’s electronic credit ledger.
Q8: What happens if I missed the 1-month ITC transfer deadline?
Answer:
You may need to approach your jurisdictional officer for relaxation based on reasonable cause. Officers sometimes allow administrative relief on case-to-case basis.
Q9: Do I need to amend invoices issued during the merger transition?
Answer:
Not mandatory.
But advisable for accuracy.
However, GST payment remains the primary requirement.
Q10: Should I update my business address on GST portal?
Answer:
Yes.
All business details should be updated immediately to avoid future notices.
👉 https://finodha.in/gst-compliance/
Q11: Is GSTR-1 affected by this notification?
Answer:
Only tax period alignment changes.
Data must reflect invoices based on split tax periods for Jan & Feb.
Q12: Are composition taxpayers also covered?
Answer:
Yes, if they were registered in either of the erstwhile UTs and shifted to the merged UT.
Q13: What if I filed returns wrongly for Jan/Feb 2020?
Answer:
You may need to file late corrections or request your GST officer for administrative support. It’s not uncommon during territorial mergers.
Q14: Is this notification still applicable today?
Answer:
It was applicable till 31 May 2020, but references are still important during audits, assessments, and GSTIN migration checks.
Q15: Does this impact GST annual return or audit?
Answer:
Yes.
During audit, officers may check:
Whether special tax periods were followed
Whether ITC transfer was done properly
Whether correct tax was paid in GSTR-3B
Need help with GST audit support?
👉 https://finodha.in/gst-compliance/
Q16: Should I take expert help for ITC transfer or return correction?
Answer:
Yes, because a wrong ITC transfer may cause future notices. Finodha experts can assist in all GST issues.
👉 https://finodha.in/gst-return-filing/
📌 Conclusion
Notification No. 10/2020 – Central Tax played a crucial role in ensuring smooth GST transition after the merger of Dadra & Nagar Haveli and Daman & Diu. The special procedures ensured correct tax periods, simplified ITC transfer, and avoided disruptions for businesses.
Download PDF: Notification No. 10/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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