GST tax filing date extended: File your returns by August 28 to claim transitional credit

The government on Thursday extended the date for taxpayers to avail transitional input tax credit under the Goods and Services Tax. Now taxpayers can file their tax returns till August 28. All the business entities that are registered under the new taxation system will have to file their first return - GSTR 3B - for July on the portal of GST Network by August 20. The window for return filing was opened on August 5.

After the date extension, business entities who want to claim transitional input tax credit will have to deposit taxes on the basis of self-assessment by 20 August, but they will have one more week till 28 August to file their returns. Those taxpayers who do not claim any transitional input tax credit will have to necessarily pay tax and file return in Form 3B before the due date of August 20.

The Finance Ministry in a statement said that concerns have been raised about the form to claim transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21 August. "A small window of opportunity is being given to all the taxpayers. The taxpayers who want to avail of the transitional input tax credit will have to make full settlement of the liability after adjusting the transitional input tax credit before August 20," the Ministry said.

They will get time up to 28 August, 2017, to submit Form TRANS I after estimating transitional credit and Form 3B. "In case of shortfall in the amount already paid vis-a-vis the amount payable on submission of Form 3B, the same will have to be paid with interest of 18 percent for the period between August 21, 2017, till the payment of such differential amount," the ministry further added.

To make compliance easy for businesses, the GST Council has allowed businesses to initially file their returns on self-assessment basis in the first two months of the GST rollout. So, the GST returns for July and August will be filed on the Goods and Services Tax Network (GSTN) portal by filling the GSTR
3B form.

Earlier this month, the Central Board of Excise and Customs had notified the timeline for furnishing final tax returns under the GST. The CBEC had issued a notification saying outward supplies in Form GSTR-1 for the month of July will have to be filed between September 1-5 and for August, it is to be filed between September 16-20. In June, the GST Council had allowed businesses extended timeline for filing final GST returns in forms GSTR-1, GSTR-2 and GSTR-3 for July and August.

The final GST returns for July will have to be filed by these businesses by 5 September instead of 10 August. Companies will have to file sale invoice for August with GST Network by 20 September instead of 10 September earlier.

(with inputs from PTI)