No Deadline Extension to File GST Returns for ITC

GST Registration Services in Delhi India

The due date for filing of return for availing input tax credit for financial year 2017-18 is Saturday as the government has turned down corporate India’s plea for an extension. The finance ministry, however, clarified that filing of details by suppliers and the facility to view it did not impact taxpayers’ ability to avail input tax credit (ITC 1.05 %).

“It is clarified that the furnishing of outward details in Form GSTR-1 by the corresponding supplier and the facility to view the same in GSTR-2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer to avail the ITC on self-assessment basis in consonance with the provisions of the Section 16 of the Act,” the ministry said in a statement on last Thursday.

The statement said the apprehension that ITC can be availed only on basis of reconciliation between Form GSTR-2A and Form GSTR 3B for September 2018 is “unfounded” as the exercise can be done thereafter also.

Tax analyzers said the government should allow for rectification of the return form at least once after the due date considering that hundreds of crores of rupees are at stake “While the press release says reconciliation between GSTR 2A (vendor’s invoices) and GSTR 3B is not needed, the law does clearly state that input credit will not be allowed unless vendors have paid tax and filed their returns,” said Pratik Jain, national indirect taxes leader at PwC.

Sachin Menon, national head, indirect tax, KPMG in India, told, “The government release seems to be hinting that the receiver of taxable supply shall claim all input credits even in anticipation of potential uploading of invoices by suppliers post the filing of September 18 returns. Being the first year of GST, even to figure out missing invoices through reconciliation is time consuming and hence industry expects government to be lenient.”