Dated 22nd September, 2017

TRAN 1- New Clarification

TRAN 1- New Clarification


Backdrop

The GST Council had earlier announced the extension of deadline for filing revised declaration of TRAN-1 to October 31, 2017. However, yesterday a separate clarification has been provided in relation to the filing of TRAN-1. There were a number of speculations surrounding the last date for filing the original TRAN-1 which were put to rest a few days back with the clarification provided by the Council on extension of deadline for revision of TRAN-1 and not filing for filing the original form. Yesterday, GST Council has thrown light to the extension of deadline for filing TRAN-1.

Latest Clarification

GST Council has notified the extension of deadline for submitting declaration in TRAN-1, under Rule 117 of CGST Rules, 2017. As per the latest order, the period for filing TRAN-1 has been extended to October 31, 2017.

Provisions under Rule 117 of the Central Goods and Service Tax (CGST) Rules, 2017 deals with carrying forward of taxes or duties on goods held in stock on 1st July, 2017. Therefore, GST Council has offered a relief to taxpayers who would file TRAN-1 under Rule 117. However, there has been no interpretation or clarity by the government regarding the filing of TRAN-1 under Rule 118, 119 and 120. Rule 118 covers procedures to claim credit on goods in which VAT/service tax are paid in pre-GST regime while rule 119 covers job work.

The question now arises as to whether the deadline for filing TRAN-1 in other cases like under rule 118, 119 and 120 remains 28.09.2017. An ambiguity persists in the declarations of the Council surrounding the submission of TRAN-1 time limit. The government has not provided any clarity about the deadline for submission of TRAN-1 under all other circumstances barring rule 117.

Conclusion

Form GST TRAN-1 has been the subject matter of all controversies from the beginning of transition into GST. A contrast between recent notifications and the GST council decision have made it more controversial and created a panic in the minds of taxpayers and consultants. Although the date for submission of TRAN-1 under rule 117 has been extended to 31.10.2017, still a dilemma in the minds of the taxpayers lingers on regarding the filing of TRAN-1 under other circumstances. Unless, a notification addressing the ambiguity is declared by the GST Council, it is advisable for the taxpayers to file TRAN-1 by 28.09.2017 for those under rule 118, 119 and 120 because it is better being safe than sorry.


1Order No. 02/2017- GST dated 18.09.2017

2 Order No. 03/2017- GST dated 21.09.2017


TRAN 1- New Clarification

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TRAN 1- New Clarification

TRAN 1- New Clarification
Founder Member

Bhaskar Thakkar

Chief Executive officer

BT Associates, India

thakkar@btassociate.com

Twenty years of exprience in tax practice, specialist in structuring & planing and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.