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

AI Summary

Textile Dealer Seeks Clarification on Transitional Credit and Late Filing Penalties Under Section 140(3)(iv) and Amended Section 50 A retail textile dealer sought clarification on claiming transitional credit for VAT paid prior to July 1, 2016, under Section 140(3)(iv) during an audit. The query also addressed penalties for late GSTR-1 filing for 2017-18. Responses indicated that credit transitioned from earlier returns has no time limit, but credit on closing stock as of June 30, 2017, is time-bound. No current relaxation exists for late filing fees. Interest on transitioned credit is applicable from the date of utilization until reversal, as per amended Section 50. Participants expressed gratitude for the shared insights.