Retail

No deadline extension to file GST returns for input tax credit


NEW DELHI: The last date for filing of return for availing input tax credit for 2017-18 is Saturday as the government has turned down corporate India’s plea for an extension.

The finance ministry, however, clarified that filing of details by suppliers and the facility to view it did not impact taxpayers’ ability to avail input tax credit (ITC).

“It is clarified that the furnishing of outward details in Form GSTR-1 by the corresponding supplier and the facility to view the same in GSTR-2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer to avail the ITC on self-assessment basis in consonance with the provisions of the Section 16 of the Act,” the ministry said in a statement on Thursday.

The statement said the apprehension that ITC can be availed only on basis of reconciliation between Form GSTR-2A and Form GSTR-3B for September 2018 is “unfounded” as the exercise can be done thereafter also. Tax experts said the government should allow for rectification of the return form at least once after the due date considering that hundreds of crores of rupees are at stake.

“While the press release says reconciliation between GSTR 2A (vendor’s invoices) and GSTR 3B is not needed, the law does clearly state that input credit will not be allowed unless vendors have paid tax and filed their returns,” said Pratik Jain, national indirect taxes leader at PwC.

Section 16(4) of Central GST Act says a registered person shall not be entitled to take ITC in respect of any invoice or debit note for supply of goods or services or both after the due of the furnishing of return under Section 39 for the month of September following the end of financial year to which such invoice or debit note pertains, or furnishing of annual return, whichever is earlier.

Industry bodies CII, Assocham and ICAI had represented for extension of the October 20 deadline.

“Businesses will still need to be cautious on the credit availed for the previous fiscal as ineligible credits would need to be reversed with interest in future as there is no change in Section 16(4),” said M S Mani, partner at Deloitte India.

Bipin Sapra, partner at EY, said the finance ministry’s clarification still requires the industry to take the credit before due date for filing of September return by October 20 on the basis of invoices available with it. “Even if the reconciliation can be substantially allowed, it seems the vendors will not be able to change 3B returns. Hence, the due date for rectification should also be accordingly changed,” he said.

Sachin Menon, national head, indirect tax, KPMG in India, said, “The government release seems to be hinting that the receiver of taxable supply shall claim all input credits even in anticipation of potential uploading of invoices by suppliers post the filing of September 18 returns. Being the first year of GST, even to figure out missing invoices through reconciliation … is time consuming and hence industry expects government to be lenient.”





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