This is to update that Ministry of Finance vide a Press Release dated August 17, 2017 has clarified regarding the availability of Transitional Input Tax Credit (ITC) for making payment of GST for the month of July 2017. Vide the said Press Release, it has been clarified that :
► The taxpayers who are willing to avail transitional ITC are required to compute their tax liability after estimating the amount of transitional credit. The Press Release though clarifies that payment of tax liability post adjustment of such estimated transition credit is required to be made by August 20, 2017.
► With the above, the Government has granted additional 8 day time i.e. August 28, 2017, to submit Form TRAN- I and Form 3B respectively. It has been clarified that in case of a shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the tax payer will be liable to discharge the balance tax along with interest @ 18% for the period between August 21, 2107 till the payment of such differential amount.
► Further no such extension will apply to taxpayers not opting for the above (i.e. transitional credit) and the due date will continue to be August 20, 2017.
With the above, it can also be inferred that transitional ITC is only available once the prescribed ITC transition form is filed and no such credit appears to be available unless such compliance is adhered to. We have attached herewith a copy of the Press Release for your reference. The official Notification from the Central Government in this regard is yet to be issued.