Last date for revision of TRAN-1 is December 27: Finance Ministry
Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1 by December 27, The Ministry of Finance notified on Tuesday.
New Delhi : Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1 by December 27, The Ministry of Finance notified on Tuesday.
"Transition to Goods and Services Tax (GST) provided for trust based transition of input tax credit of the existing taxpayers. A tax payer could file Form TRAN-1 and avail input tax credit on the basis of closing balance of the input tax credit declared in the last return under the pre GST regime. The last date for filing of Form TRAN-1 is December 27. Revision of Form TRAN-1 has also been provided, the last date for which is also 27th December, 2017," an official release from the Ministry of Finance read.
Further, the Ministry advised taxpayers to 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.
Taking cognizance of some taxpayers having availed "extraordinarily high transitional credit of CGST", the Ministry noted that analysis to understand the reason behind such amounts is underway.
"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. 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," the statement read.