This is to update that Ministry of Finance
vide a Press Release dated August 17, 2017 has clarified regarding the
availability of Transitional Input Tax Credit (ITC) for making payment of GST
for the month of July 2017. Vide the said Press Release, it has been
clarified that :
► The taxpayers who are
willing to avail transitional ITC are required to compute their tax liability
after estimating the amount of transitional credit. The Press Release
though clarifies that payment of tax liability post adjustment of such
estimated transition credit is required to be made by August 20, 2017.
► With the above, the
Government has granted additional 8 day time i.e. August 28, 2017, to submit
Form TRAN- I and Form 3B respectively. It has been clarified that in case
of a shortfall in the amount already paid vis-à-vis the amount payable on
submission of Form 3B, the tax payer will be liable to discharge the balance
tax along with interest @ 18% for the period between August 21, 2107 till the
payment of such differential amount.
► Further no such
extension will apply to taxpayers not opting for the above (i.e. transitional
credit) and the due date will continue to be August 20, 2017.
With the above, it can also be inferred that
transitional ITC is only available once the prescribed ITC transition form is
filed and no such credit appears to be available unless such compliance is
adhered to. We have attached herewith a copy of the Press Release for
your reference. The official Notification from the Central Government in
this regard is yet to be issued.
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