GOODS AND SERVICES TAX

CLARIFICATION

on Tax payment, filing of GSTR-3B Return & Transitional Credit for July, 2017

A. 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:-

I. 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

II. Tax payable as per (I) above to be deposited on or before 25.08.2017 which will get credited to the electronic cash ledger.

III. File the return in FORM GSTR-3B on or before 25.08.2017 after discharging the tax liability by debiting the electronic credit or cash ledger.

Earlier the above dates were 20.08.2017 which were extended to 25.08.2017 vide press release dated 19.08.2017- Date to file GST Return in Form 3B & Payment extended to 25th August 2017

B. 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:-

I. 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)

II. Tax payable as per (I) above to be deposited on or before 20.08.2017 which will get credited to the electronic cash ledger.

III. File FORM GST TRAN-I (which will be available on the Common Portal from 21.08.2017) before filing the return in FORM GSTR-3B.

IV. In case the tax payable as per the return in FORM GSTR-3B is greater than the cash amount deposited as per (II) above, deposit the balance in cash along with interest @18% calculated from 29.08.2017 till the date of such deposit. This amount will also get credited to the electronic cash ledger.

V. File the return in FORM GSTR-3B on or before 21.08.2017 after discharging the tax liability by debiting the electronic credit or cash ledger.

Earlier the above dates were 20.08.2017 which were extended to 28.08.2017 vide press release dated 17.08.2017- Return filing In Form GSTR-3B- Due Date & transitional credit

Please note

1. FORM GSTR – 3B once filed cannot be revised.

2. Transitional credit shall be available on filing of FORM GST TRAN – I only. Since, last date of filing FORM GST TRAN -I is 30.09.2017, transitional credit can be availed in subsequent months also.

3. Deemed credit would be available only after filing FORM GST TRAN -II, which can be filed only after making payment of tax against the supply for which deemed credit is to be availed. Therefore, credit through FORM GST TRAN -II will be available on tax periods subsequent to the tax period in which payment for such supply has been made.

Source- https://twitter.com/CBEC_India/status/898740206500696065

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3 responses to “Tax payment, filing of GSTR-3B Return & Transitional Credit for July, 2017”

  1. CMA ANIL SHARMAa says:

    True the formula given for tax is wrong. There are other mistakes also in the article. For example at one place in article GSTR-3B is mentioned as GSTR-38. IN OPENING LINES IT IS MENTIONED AS GSTR-313.

  2. Anshul Goel says:

    This is wrong formula to calculate the tax liability after avaiment of Transitional credit. GST under reverse charge can not be set off from the credit whether available during the month or transition credit.Reverse charge is supposed to be paid in cash.

  3. sanjay says:

    I think this article is wrong. Reverse Charge TAx has be to paid and cannot be adjusted against input credit available for the month.

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