According to the GST Act, the set-off of excess tax paid in the form of excise duty, Value Added Tax and Service Tax and outstanding as on June 30, is allowed while filing GST returns
An estimated 30 per cent of the businessmen filing GST returns will not have to shell out additional working capital to pay taxes, as the deadline for filing the first Goods and Services Tax (GST) return for businessmen who want to set off their outstanding tax credit against the payable tax, has been extended by eight days. The new deadline is August 20, according to sources, one of them a member in GST Council, said on Thursday.
According to the GST Act, the set-off of excess tax paid in the form of excise duty, Value Added Tax and Service Tax and outstanding as on June 30, is allowed while filing GST returns. The first return, for business done in July, needs to be filed by August 20 in the form of Form 3B. However, to avail tax credit, forms Trans 1 and Trans 2 need to be filed, for which the deadline is September 28. So, a trader needs to file forms 3B, Trans 1 and Trans 2 before August 20 to claim outstanding credit. However, Trans 1 and Trans 2 are not available online even as the August 20 deadline draws nearer.
The Gujarat Chamber of Commerce and Industry (GCCI) recently wrote to GST Council, seeking an extension of the August 20 deadline to avoid liquidity crunch. "The deadline to file Form 3B is now August 28, by which forms Trans 1 and Trans 2 also need to be filed. Soon, forms Trans 1 and Trans 2 will also be available. The council has agreed to our demand; but, since Thursday is a government holiday, a formal notification will be issued on Friday," said Shailesh Patwari, president of GCCI. A member of GST Council confirmed that the deadlines have been revised and the council is under the process of issuing a notification. However, the deadline for filing Form 3B, Trans 1 and Trans 2 remains unchanged for businessmen who do not have to claim tax credit.
Tax practitioners say while the revision of the deadline will give businessmen a breathing space, the deadline may have to be extended further, considering the quantum of Trans 1 and Trans 2 forms that need to be filed across the country.
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