Govt extends deadline for filing GST returns for some businesses

Live mint By Gireesh Chandra Prasad Thu, Aug 17 2017. 09 23 PM IST

Businesses claiming transitional input tax credit now have time till 28 August to file their GST returns on Goods and Services Tax Network (GSTN)

The first GST return, GSTR 3B, for July has to be filed on GST Network by 20 August. Photo: Bloomberg

New Delhi: The government on Thursday extended the deadline for businesses to file their goods and services tax (GST) returns for July, the first month since implementation of the indirect tax, in cases where credit for taxes paid under the previous indirect tax system is being claimed.

A statement issued by the Central Board of Excise and Customs (CBEC) said that the extension till 28 August applies only to filing of returns where credit is being claimed, and not for remitting the applicable tax amount for July, the deadline for which remains 20 August.

Even those availing of the extended deadline for filing returns have to calculate their tax liability after adjusting for the applicable tax credit and make payment by 20 August. Any shortfall will attract 18% interest. For taxpayers, who do not want to claim credit for taxes paid under the previous regime to settle their GST liability, the deadline for filing returns remains 20 August, the statement said.

The decision to give extra time for filing GST returns and claiming tax credits was taken because the form for claiming tax credit, called ‘Trans 1’, is not available.

“Concerns have been raised about the form for claiming transitional input tax credit not being available on the GST Network (GSTN) website. This form will be available on the GSTN website from 21 August. In view of this, a small window of opportunity is being given to all the taxpayers,” said the statement.

GSTN is the company that processes tax returns.

Businesses only need to file a summary of their tax liability, and not invoice-level details, in August.

Pratik Jain, partner and leader of indirect tax, PwC India, said that with Thursday’s announcement, businesses will be able to claim opening credit by filing the relevant form before 28 August.

“However, since GST has to be paid by 20 August, businesses will have to determine the opening credit beforehand. It is not clear, however, as to whether Trans 1, once filed, can be revised later,” he said.

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