Every person to whom the provision of clause (b) of sub-section (11) of section 142 applies, shall within the period specified in rule 117 or such further period as extended by the Commissioner, submit a declaration electronically in FORM GST TRAN-1 furnishing the proportion of supply on which Value Added Tax or Sales Tax on services has been paid before the appointed day but the supply is made after the appointed day, and the Input Tax Credit admissible thereon:

Provided that such credit of tax already paid under the Jammu and Kashmir Value Added Tax, 2005 or the Jammu and Kashmir General Sales Tax Act, 1962 as the case may be, shall be calculated in the following manner-

Value of goods to be supplied/services to be rendered, as per agreement/contract executed before the appointed day = X1

Value of goods supplied/ services rendered out of Xi before the appointed day = X2

Value of goods pending supply/services to be rendered on the appointed day (X1-X2) =X3

Total VAT/Sales Tax payable on X1 = T1

VAT/Sales payable on X2 = T2

VAT/Sales Tax payable on X3 = T3

VAT/Sales Tax already paid before the appointed day = T1 i.e (T2 + T3)

ITC of State tax available for X3 = T3 i.e (T1-T2)