TRANSITIONAL CREDIT AND PENALTY ON GSTR1 2017-18

[KERAGODEGOPALARAO ANANTHARAO]

Dear Sir,

1. A registered person who is retail dealer in textiles claimed transitional credit on VAT paid in earlier years. Officer is making ineligible credit to the extent of purchases before 01/07/2016 U/s 140(3)(iv) at the time of Audit. Is any provision for claiming full trasitional credit on purchases above one year.

2. For GSTR-1 late filed for the year 2017-18 is any late filing fees or penalty is attracted?

Kindly clarify sir.

Yours faithfully,

K G Anantharao

[KERAGODEGOPALARAO ANANTHARAO]

Is notification 43/2018 is applicable availing abatement for late filing fees?

[Shilpi Jain]

If credit is transitioned from earlier returns then there is no time limit for such purchases. However, if credit is claimed on closing stock on 30.6.17 then this time limit will apply.

No relaxation presently available from late fee for filing of returns.

[KERAGODEGOPALARAO ANANTHARAO]

From when interest is applicable?

From 01/07/2017 or from date of availing the credit?

[Vijay kumar]

As per amended Section 50, interest is applicable if the transitioned credit is utilized. It is to be paid from the date of utilization till the date of reversal

[Ravinesh Sinha]

I agree with Shilpi ji

[KERAGODEGOPALARAO ANANTHARAO]

THANK YOU SO MUCH

AI Summary

Transitional credit interest applies from date of utilisation until reversal; late filing fees for returns remain payable.
A taxpayer may transition input tax credit declared in earlier returns without a general time limit, but credit claimed on closing stock at the cut off date is time barred by the closing stock limitation. Interest is chargeable when transitioned credit is utilised, running from the date of utilisation until reversal. No waiver for late filing fees for GSTR 1 is available in the discussed scenario.