Taxpayers asked to file Form TRAN-1 by Dec 27 to avail input tax credit
The Finance Ministry statement said, "In keeping with the philosophy of voluntary compliance, revision of Form TRAN-1 has also been provided. The last date for revision of TRAN-1 is also 27th December, 2017."
Union Finance Ministry has asked the existing taxpayers to file Form TRAN-1 to avail input tax credit on the basis of closing balance of the same declared in the last return under the pre GST regime.
The last date for filing of Form TRAN-1 is December 27, 2017.
The statement said, "In keeping with the philosophy of voluntary compliance, revision of Form TRAN-1 has also been provided. The last date for revision of TRAN-1 is also 27th December, 2017."
It further said, "It has been noted that some taxpayers have availed extraordinarily high transitional credit of CGST which is neither commensurate with the trend of input tax credit of the industry nor as maintained by the taxpayer himself in the past. Some of these high transitional credits may have a bonafide explanation or may be a case of bonafide mistake. However, it has been noted that high transitional credit has been claimed in many cases for which perhaps no bonafide explanation exists."
It also clarified that "analysis to identify such units is underway. Such behaviour leads to breach of trust between the taxpayer and the tax-administration, which is the bed-rock of self-assessment regime in GST."
"Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1 by 27th December, 2017 and ensure that only correct and bonafide credit is availed in transition, failing which the tax administration would be constrained to initiate audit and enforcement action against the identified units," the statement added.
Inputs refer to materials or services that a manufacturer procures or avails to manufacture a product or services which is the output. And the taxes paid by a manufacturer, while buying the raw material or services, are known as input tax.
Similarly, the tax collected on the sale of the product is called the output tax. As the GST is charged on both goods and services, input credit can be availed on both goods and services.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.