Clarification regarding availability of Transitional Credit for GST- GST deadline to file returns extended by CBEC to 28th August, 2017

Circular No.ES/137/2017-18 August 18, 2017

To: Members of the Council

Sub: Clarification regarding availability of Transitional Credit for GST-
GST deadline to file returns extended by CBEC to 28^th August, 2017

Dear Member,

This is to inform you that the Ministry of Finance has issued clarifications regarding availability of Transitional Credit for GST on 17^th August, 2017.

The Central Board of Excise & Customs (CBEC) has extended the deadline for taxpayers claiming input tax credit on transition (pre-GST) stocks to file the first interim returns for July by a week to August 28. However, these taxpayers will have to settle their tax liability by the earlier deadline of August 20.

In view of the above, a few clarifications are given herebelow,

The deadline for filing returns will continue to be August 20 for assessees who do not opt to claim ITC in July for goods bought before the GST roll-out.

The taxpayers who want to avail the transitional input tax credit should also calculate their tax liability after estimating the amount of transitional credit as per Form TRANS I.

They have to make full settlement of the liability after adjusting the transitional input tax credit before 20th August, 2017.

The taxpayers will get time till August 28 to submit Form TRANS I and Form 3B on the GST Network, the IT back end.

In case of shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the same will have to be paid with interest at18% for the period between 21st August, 2017 till the payment of such differential amount.

Also, the GST Network is expected to release TRAN-1 and TRAN-2 forms — to be used for claiming ITC on transition stock – on August 21.

These new forms will have provision for claiming ITC for pre-GST stocks, addressing the industry’s concerns over absence of the same in the earlier Form 3B.