GSTR 3B return deadline extended to August 28 for those claiming transitional tax credit

GSTR 3B return deadline extended to August 28 for those claiming transitional tax credit

                                                GSTR 3B return deadline extended to August 28 for those claiming transitional tax credit

The government on Thursday gave some relief to taxpayers availing of transitional input tax credit under the goods and services tax (GST) regime by giving them an extra week till August 28 to file tax returns.

Businesses under the GST set-up have to file their first return, GSTR 3B, for July on the portal of GST Network (GSTN) — the information technology (IT) infrastructure provider for the new indirect tax regime — by August 20. The return filing had commenced on August 5.

The finance ministry on Thursday offered some relaxation to those businesses that claim transitional input tax credit. These entities will have to deposit taxes on the basis of self-assessment by August 20, but they will have one more week till August 28 to file their returns.

Those taxpayers that 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 ministry said.

It added 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 August 21.

"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, 2017," it said.

They will get time up to August 28, 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 per cent for the period between August 21, 2017, till the payment of such differential amount," the ministry said.

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 GSTN portal by filling the GSTR 3B form.

Over 71.30 lakh excise, service tax and value-added tax (VAT) payers have migrated to the GSTN portal. Also 15 lakh fresh registrations have happened on the portal.

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

GSTR 3B : GST Return Filing For July And August 2017

The GST Council has relaxed filing rules for the first two months post implementation. Here's how to file your returns for these months using form GSTR-3B. 

GSTR 3B is a simpler return that businesses need to file in the first two months of GST (July and August, 2017) instead of the normal returns – GSTR 1, 2 and 3.

Under GST, a registered dealer is required to file three returns every month and one annual return. So, in total 37 returns have to be filed every year. Since filling up these complex forms require a great amount of time and understanding, the government has postponed the filing of GSTR 1,2 & 3 for July and August, 2017.

In the place of these monthly returns, GSTR 3B has been introduced.

Deadlines for July and August GST Returns are as follows:

Forms	For July 2017	For August 2017
GSTR 3B	20th August	20th September
GSTR 1	5th September	20th September
GSTR 2	10th September	25th September

You are not required to file GSTR 3 for the months of July and August.

Also, there is no late fee or penalty levied for the months of July and August in the case of delayed return filing.

From September 2017, every taxpayer has to strictly follow the regular provisions of filing GSTR 1, 2 and 3 on 10th, 15th and 20th of the next month respectively:

Due Date	GST Form No.	Form Name
10th of the next month	GSTR 1	Details of outward supplies of taxable goods and/or services effected
15th of the next month	GSTR 2	Details of inward supplies of taxable goods and/or services effected claiming input tax credit.
20th of the next month	GSTR 3	Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.
31st December of next financial year	GSTR-9	Annual Return

Sections under GSTR 3B

1. Outward Supplies:
1. Details of outward supplies and inward supplies liable to reverse charge
2. Details of inter-State supplies made to unregistered persons, composition dealer and UIN holders
2. Input Tax Credit: Details of eligible ITC
3. Purchases: Details of exempt, nil-rated and non-GST inward supplies
4. Payment of tax: Outward Tax Liability (minus) Input Tax Credit
5. TDS/TCS Credit: Sections on TDS and TCS have not been notified till date.

You can download a sample GSTR-3B form issued by the Government Of India here.

Download Official Notification here.