Form GSTR 3B and Transitional Credit

As we are aware that for the month of July 2017 and August 2017, Form GSTR 3B is specified for the time being.

The industry has not understood the form GSTR 1, yet another form was introduced by the Govt which will be of no use after two months and that form is GSTR 3B (now referred to as the said form).

The major problem in the said form is that it doesn’t talk about the Transitional credit as available to existing taxpayers.

So there was lot of ambiguity with regards to whether the Transitional credit will be available or not.

We were of the opinion that they will allow the said credit as it was running into crores of rupees in various industries and it was the right given under the law to the existing taxpayers to claim the same and it can’t be snatched away just merely by non specifying the form.

Today Govt. has made a clarification with regards to the Transitional credit available to the existing taxpayers in the Form GSTR 3B and also extended the due date for filing of the said form to some extent.

The highlights of the said clarifications are as under:

1. Form for claiming the Transitional credit will be available from 21st August 2017.

2. The persons who want to claim Transitional credit can file the form Trans 1 and GSTR 3B up to 28th August 2017.

3. However, even those taxpayers who want to claim Transitional credit are required to deposit the tax latest by 20th August 2017 and not by 28th August 2017. Of course while considering the tax payment, they should make the payment after considering the Transitional credit. It means it is extension for filing of form only and not for payment of tax.

4. For above, In case there is any difference in the amount paid before 21th and the liability as arise before filing return after 20th but before 28th then the said liability is required to be discharged by paying interest @18% p.a additionally.

4. For all the taxpayers who do not want to claim Transitional credit nor in possession of Transitional credit are required to file Form GSTR 3B by 20th August 2017 only. There is no extension of due date for them.

P Chhajed & Co LLP, a renowned and Top Chartered Accountant Firm in Ahmedabad, is a Limited Liability Partnership Form of organization, a highest form of organization a Chartered Accountancy Firm is permitted to form.

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