Most of the Traders were registered with respective State VAT authorities in Pre GST period and they did not possess any Central Excise Duty paying documents for the stocks held on the appointed date i.e., 01.07.2017. Government has given option to the Traders to declare these stocks held by filing GST Tran– 1 and facilitated the claim Credit of CGST by filing of GST TRAN-2 on monthly basis for a period of six tax periods (Rule 117 (4) of GST Rules).
Theoretically, it sounds good. However, in practice the GST Portal is not flexible enough to accommodate the requirements of Trade and Business and their practices.
While filing Monthly GST TRAN-2, in Sl.No.4 of the Form concerning “Details of inputs held on stock on appointment date”, it is made mandatory to furnish the details of “Outward Supply made” during the month.
For eg., if a Trader got certain quantity of a particular item as Opening stock (OB) in the month of July, 17 but sales were made only in September’ 17 and there were no sales of it during July’17 & Aug’17, the GST Portal is not allowing to furnish the details of OB of that particular item in GST Tran – 2 for the month of July, 17. At the same time, the GST Portal is also not allowing to furnish the details in the GST Tran -2 for the month of Sept, 17.
Thus a Trader made to lose his claim of CGST if there are no sales of the items in the month of July, 17. Thus, filing of Tran-2 for July, 2017 for all the opening stock became crucial for claim of CGST. To avoid this complication, one may consider filing all the details of Opening Stock of each and every item and consider showing a small token quantity of each of them as sale in July, 17 for making a successful claim of CGST.
However, If a Supplier mistakenly files the GST Tran-2 for July, 17 without aware of these rigidities, GST Portal do not allow him to revise the GST Tran -2 for other stocks. In the process, Traders are bound to heap huge loss of claim of CGST.
It may be noted that there is no Law or Rule mandating that the Supplier shall sell the stock held on appointed date during the month of July, 17 compulsorily for making a valid claim of CGST.
In view of these issues, it is requested to remove the “mandatory field” in the “outward supply made” and also allow filing the opening stock though there is no sale in the month of July’17. Further, it is requested to allow editing the filed GST Tran – 2 by giving “Reset” option.
The Authorities shall keep in mind that a flexible accommodative system is crucial for success of any Scheme particularly when it is affecting the revenues that too when the whole process is to be discharged by E- Governance. Hope, the Government and Authorities realize and resolve the issues to everyone’s satisfaction.
(Content is merely for sharing knowledge. Author is Superintendent of Customs, Central Excise & Service Tax (Ex), Hyderabad and can be reached at [email protected] or 9440551266)