The government on Thursday extended the return filing deadline for those taxpayers who want to claim transitional input tax credit to August 28 from August 20 notified earlier. The clarification was issued by the finance ministry after concerns were raised by industry that TRANS-I, the form for claiming transitional input tax credit, was not available on the GST Network (GSTN) website, yet the deadline for filing GSTR 3B, which is a summary of self-assessed tax liabilities with consolidated details of outward supplies and input credit, was notified to be August 20.
However, the deadline for payment of the tax, that is, GST as per self-assessment for those taxpayers who want transitional input tax credit, will remain unchanged on August 20, the ministry said. Also, those taxpayers that do not want to claim any transitional input tax credit will have to necessarily pay tax and file return in GSTR 3B by the due date of August 20, it said.
“Concerns have been raised about the form for claiming transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from August 21, 2017,” the release said.
It further said, “In case of shortfall in the amount already paid vis-a-vis the amount payable on submission of Form 3B, the same will have to be paid with interest of 18 per cent for the period between August 21, 2017, till the payment of such differential amount.”
While some tax experts said it would provide relief on the cash flow front to industry, others said that it’s still not clear if revisions in TRAN-1 form will be allowed. “This benefit would be available only to those who will file TRAN 1 on or before August 28. This would provide a major cash flow relief to the industry,” Abhishek Jain, Tax Partner, EY said.
Pratik Jain, Partner and Leader Indirect Tax, PwC said, “It was not clear as to whether opening input credit can be claimed while filing GSTR 3B. Now, the businesses will be able to claim opening credit by filing TRAN 1 before August 28, which is the revised due date for filing GSTR 3B. However, since GST has to be paid by August 20, businesses will have to determine the opening credit beforehand. It is not clear, however, as to whether TRAN 1, once filed, can be revised later.”
The GST Council had earlier allowed businesses to initially file their returns on self-assessment basis and also tweaked the return filing deadlines for first two months after the GST rollout from July 1. The final GST returns for July will have to be filed by businesses by September 5 instead of earlier date of August 10. Companies will have to file sale invoice for August with GSTN by September 20 instead of September 10 earlier.