INSTRUCTIONS BY CENTRAL GOVERNMENT IN
RESPECT OF PAYMENT OF TAX FOR THE MONTH OF JULY 2017
The Goods and Services Tax
Act, 2017 came into force with effect from 1.7.2017.
The taxpayers have to file
FORM GSTR-1, FORM GSTR-2 and GSTR-3 during September 2017 as per relaxed dates.
Each and every taxpayer will
have to file FORM GSTR-3B on self-assessment basis for the month of July, 2017
on or before 20.8.2017 and for the month of August, 2017 on or before
20.9.2017.
The Central Government has
issued clarifications regarding payment of tax under GST for the month of July,
2017 and according to the clarifications taxpayers who will have to pay tax
under GST should pay tax before 20.8.2017 by following the two method of
calculations.
Registered
persons planning not to avail transitional credit for discharging the tax
liability for the month of July, 2017 or new registrants who do not have any
transitional credit
Tax payable = (Output tax liability + Tax payable under
reverse
charge) – input tax
credit
availed for the month
of July, 2017;
Formula for Registered
persons planning to avail transitional credit for discharging the tax liability
for the month of July, 2017.
Tax payable = (Output tax liability + Tax payable under reverse
charge) – (transitional
credit + input tax
credit) availed for the
month of July, 2017)
The Governmet Press release were given below for ready
reference:
PRESS NOTE ON FILING OF RETURN
IN FORM GSTR-3B FOR JULY,
2017
GST Council had earlier decided to defer the filing
of return in FORM GSTR-3 and
had
recommended the filing
of return in FORM GSTR-3B. Accordingly, the Central Government vide
notification No. 21/2017-Central Tax dated
08.08.2017 had notified the last date for filing of
return
in FORM
GSTR-3B for
the
month of July, 2017 as
20.08.2017.
2. Concerns have been raised by the trade about whether transitional credit would be
available for discharging the tax liability for the month of July, 2017. In this regard, attention is invited to notification No. 23/2017-Central tax dated 17.08.2017 wherein the
date
and conditions for filing the return in FORM GSTR-3B have been specified. Salient points for
filing the said return
are as follows:
A. Registered persons planning not to avail transitional credit for discharging the tax liability for the month of July, 2017 or new registrants who do not have any transitional credit to avail need
to follow the steps as detailed
below:
I. Calculate the tax payable as
per the following formula:
Tax payable = (Output tax liability + Tax payable under reverse
charge)
– input tax credit availed
for
the month of July,
2017;
II. Tax payable
as per
(i)
above to be deposited
in
cash
on
or
before
20.08.2017 which will
get credited
to electronic cash ledger;
III. File the return
in
FORM
GSTR-3B on or before 20.08.2017 after discharging the tax liability by
debiting the electronic credit or cash ledger.
B. Registered persons planning to avail transitional credit for discharging the tax liability
for the month of July, 2017 need to follow the steps as detailed below:
I. Calculate the tax payable as
per the following formula:
Tax payable = (Output tax liability + Tax payable under reverse
charge)
–
(transitional
credit
+
input
tax credit availed for
the
month
of July,
2017);
II. Tax payable
as per
(i)
above to be deposited
in
cash
on
or
before
20.08.2017 which will
get credited
to electronic cash ledger;
III. File FORM GST TRAN-1 (which will be available on
the common portal
from 21.08.2017) before filing the return in
FORM GSTR-3B;
IV. In case the tax payable as per the return in FORM GSTR-3B is greater
than the cash amount deposited
as
per (ii) above, deposit the balance in cash along with interest @18% calculated from 21.08.2017 till the date of such deposit. This amount will also get credited to electronic
cash ledger;
V.
File the return in FORM GSTR-3B on or before 28.08.2017 after discharging the tax liability
by debiting the electronic credit or cash ledger.
******
PRESS RELEASE
17th August 2017
On Clarification
regarding availability of Transitional
Credit for
GST
As per the rules, the GST for the month of July 2017 has to be paid by 20th August, 2017.
Only after the payment of full GST, return in summary Form
3B can be filed.
Concerns have been raised about the form for claiming transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21st August,
2017. In view of this, a small window
of opportunity is being given to all the taxpayers.
For those
taxpayers who do not want to claim any transitional input tax credit have to necessarily pay the tax
and file return in Form 3Bbefore the due date of 20th August, 2017. The taxpayers who want to avail the
transitional input tax credit should
also calculate their tax liability after estimating the amount of transitional credit as per Form
TRANS I. They have to make full settlement of the liability after adjusting
the
transitional input tax credit
before 20th August, 2017. However, in such cases, they
will
get
time upto 28th August, 2017 to submit Form TRANS I
and Form 3B. In case of shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the same will have to
be paid with interest @ 18% for the period between 21st August, 2017 till the payment of such
differential amount.
**************