TaxTMI 
TaxTMI 
TaxTMI 
GST council has extended the date for furnishing Form GSTR-3B for the month July 2017, from 20th August, 2017 to 28th August, 2017 vide ‘Notification No. 23/2017 – Central Tax’ dated 17th August, 2017. This extension is only for such registered person who have opted to file FORM GST TRAN-1 on or before 28th August, 2017 in order to carry forward input tax credit pertaining to period prior to appointed date to GST regime and to set off the same with output tax liability for the month of July, 2017 in Form GSTR-3B, provided following conditions are fulfilled:-
- Compute the tax payable for the month of July, 2017 and deposit the same in cash on or before the 20th August, 2017;
- File FORM GST TRAN-1 before the filing of FORM GSTR-3B;
- Where the amount of tax payable for the month of July, 2017, as mentioned in the FORM GSTR-3B, exceeds the amount of tax deposited in cash as per condition (1), the registered person shall pay such excess amount in cash along with the applicable interest calculated from the 21st day of August, 2017 till the date of such deposit.
No Extension for GSTR-3B in case GST TRAN-1 not filed on or before 28th August, 2017
It has also been mentioned that the registered persons who is entitled to avail input tax credit under transitional provisions but opt not to file FORM GST TRAN- 1 on or before the 28th August, 2017, have to file Form GSTR-3B by 20th August, 2017 itself.
No Extension of date for payment of taxes
It can be seen that extension is only for filing of GSTR-3B for those who wish to file GST TRAN- 1 on or before 28th August, 2017 and not for payment of taxes. Due date for payment of taxes is still 20th August, 2017 for all the registered persons.
Period for filing GST TRAN – 1 shortened
For availing the benefit of carry forward credit in the return GSTR-3B one has to forgo the relaxation period of 33 days (Total 90 days from 1st July, 2017) which will be still left after 28th August, 2017 for filing Form GST TRAN-1 in normal circumstances. In total 7 days, from the date of such notification, one has to file both GST TRAN-1 and GSTR- 3B.
No Provision to revise GST TRAN-1
Once filed, there is no provision to revise GST TRAN-1. The period to file the same upto 28th August, 2017 is too short. Collating, analyzing and filing the data in GST TRAN-1 is a cumbersome process. There are chances of error which cannot be rectified. Secondly, if certain creditable invoices pertaining to period prior to appointed date are received by the tax payer between 28th August, 2017 to 30th Sept, 2017 i.e. after filing GST TRAN-1, then there is no provision to book such credit in the future returns to be filed under GST regime and no provision to carry the credit relating to such invoices to Electronic credit ledger.
Notification contradictory to the GST Laws
However, what is the sanctity of paying taxes in advance, that to 8 days prior to filing of return? Further, it is contradictory to the provisions of section 39(7) of the CGST Act, 2017 which states that ‘Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return’. This implies that the due date of payment of taxes is the due date for furnishing the return. Thus, if the due date of filing GSTR-3B is 28th August, 2017 then due date of payment of taxes should also be 28th August, 2017 and not 20th August, 2017. This notification beats the provision of GST Act mentioned aforesaid.
GSTR-3B filed before issuance of the said notification
Registered person who have already furnished the Form GSTR-3B before issuance of this extension notification cannot avail the benefit of such notification. In such cases GST TRAN-1 can be filed once it is live and credit can be utilized for discharge of GST liability of subsequent months. However, there is no provision to revise GSTR-3B.
Better Late than Never
Nevertheless, it is surely a sigh of relief for the tax payers who have not filed GSTR-3B yet and who are having output tax liability of big amount & they were unable to set off the same against the input tax credit lying with them in their books of accounts. But now, they can set off their output tax liability against such credit and thus avoiding blockage of working capital.