Blog Update 28th August 2017, Amendment as per CBEC notification

The deadline for first GST Return, GSTR- 3B, has been extended (states are still coming up with Notifications) to August 28 from its original deadline of August 20.

  • However, we must keep in mind that this is only for taxpayers who opt to use the opening balance of pre-GST credit in the current month. Those who do not wish to claim opening credit in the current month or those who have no credit; the deadline continues to be August 20. 
  • The extended deadline also allows the taxpayers to file form TRAN 1 by August 28, which is a pre requisite as per the strict interpretation of law to claim the opening credit

FORM GSTR- 1
Businesses have few days left to file Form GSTR-3B. As per dates notified by the government, details relating to outward supplies for the month of July will have to be filed in Form GSTR-1 between September 1 and September 5. However, in the interim period, businesses have to file Form GSTR-3B, which will be a summary of self-assessed tax liabilities with consolidated details of outward supplies and input tax credit (ITC).

How to fill the GST enrolment application
Filing of enrolment application is necessary to avail various benefits under GST.

Procedure for filling the enrolment application through GST portal – gst.gov.in:

  1. Visit the gov.in website.
  2. Login with our user ID and password created by us and complete the information related to our business details, promoter/partner, principal and additional place of business, authorised signatory, up to five major goods or services or both supplied and bank account details.
  3. Complete and verify the information given in the verification tab and submit the application with Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
  4. We will get an Application Reference Number (ARN) (also through email) on successful submission of the enrolment application.

 Important things to be noted about GST enrolment

  • The GST enrolment form is available on the GST portal or GST Common portal – gst.gov.in.
  • Existing payers of levies such as central excise, service tax, state sales tax or VAT, entry tax and luxury tax are required to take up GST
  • If we do not want to remain registered in GST, after login we may apply for cancellation of our registration by clicking on the cancellation request.
  • All taxpayers registered under existing laws – the laws related to various erstwhile taxes that have been subsumed under GST from July 1, 2017 – are required to migrate to GST by filing the enrolment form.

Advantages of submitting the enrolment application:

We will be legally recognised as a taxpayer and will get pre-GST eligible input tax credits for utilisation under GST. We will be able to avail input tax credit and pass on tax credit to registered buyers. We will be able to make payment of tax and file Form GSTR-3B.

Notification about availability of Transitional Credit
Recently, concerns have been raised by the trade about availability of transitional credit for discharging the tax liability for the month of July, 2017 as there was no separate column for the same in Form GSTR-3B.

In this regard, the Commissioner on recommendations of the GST Council vide Notification No. 23/2017-Central Tax dated August 17, 2017 read with Press Releases dated August 17, 2017, has specified the date and conditions for filing the return in Form GSTR-3B in the following manner:

Steps to be followed in aforementioned Case A& C: Assessee not opting to avail transitional credit

Where registered persons planning not to avail transitional credit for discharging the tax liability for the month of July, 2017 or new registrants who do not have any transitional credit to avail, need to follow the steps as detailed below:

  1. Calculate the tax payable as per the following formula:
    Tax payable = (Output tax liability + Tax payable under reverse charge) – input tax credit availed for the month of July, 2017;
  2. Tax payable as per (1) above to be deposited in cash on or before August 20, 2017which will get credited to electronic cash ledger;
  3. File the return in FORM GSTR-3B on or before August 20, 2017 after discharging the tax liability by debiting the electronic credit or cash ledger.

Steps to be followed in aforementioned Case B: Assessee opting to avail transitional credit

Registered persons planning to avail transitional credit for discharging the tax liability for the month of July, 2017 need to follow the steps as detailed below:

  1. Calculate the tax payable as per the following formula:
    Tax payable = (Output tax liability + Tax payable under reverse charge) – (transitional credit + input tax credit availed for the month of July, 2017);
  2. Tax payable as per (1) above to be deposited in cash on or before August 20, 2017which will get credited to electronic cash ledger;
  3. File FORM GST TRAN-1 (which will be available on the common portal from August 21, 2017) before filing the return in FORM GSTR-3B;
  4. In case the tax payable as per the return in FORM GSTR-3B is greater than the cash amount deposited as per (2) above, deposit the balance in cash along with interest @18% calculated from August 21, 2017 till the date of such deposit. This amount will also get credited to electronic cash ledger;
  5. File the return in FORM GSTR-3B on or before August 28, 2017 after discharging the tax liability by debiting the electronic credit or cash ledger.

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