Jan 042018

As per proviso to Section 16 (2) of the CGST Act, where the recipient fails to pay the supplier of goods or services or both, the amount due towards the value of supply along with tax payable there on, within a period of 180 days from the date of issue of invoice by the supplier,

– an amount equal to the Input Tax Credit (ITC) availed by the recipient shall be added to his output tax liability, along with interest there on.

This aspect shall be taken care while filing GST returns for the month of December as the Invoices issued before 4th July 2017 should have been cleared by now.

Hence before filing your GST returns for the month of December 2017, you have to thoroughly go through your bill wise outstanding details of your supplier’s accounts.

If any invoice as above is still outstanding, while calculating the Eligible Input Tax Credit for the month of Dec 2017 , you have to reverse the Input tax credit in respect of the invoices that are outstanding for 180 days or more.

Apart from the above, Interest @ 18% p.a. has to be paid on such input tax credit reversed from the date of availing the ITC till the date of reversal.

Also note that the ITC is reversible even though the payment is made partly.

Jan 042018

Step by Step guide for filing Form GST TRAN 2 form
Prequisite:TRAN 2 can be filed only if TRAN-1 and GSTR 3B of the relevant tax period is filed.

Step1.Navigate to the TRAN 2 page of the desired tax period after logging in , Select the < Financial Year> and < Month>

Step2.Table 4 of TRAN 2 would be enabled if records were declared in Table-7(a) (7B) of TRAN 1 and Table 5 would be enabled if records were declared in Table-7(d) of TRAN 1.

Step3.Enter details of opening stock in Table 4 and Table 5 as declared in TRAN 1. Please ensure that all the HSN/goods are declared in TRAN 2, in the opening balance in the month of July, 2017, irrespective of the fact that these have been sold or not in the first i.e. July, 2017 tax period.

Step4.Declare the details of sold goods from such stock in the first tax period and the Central/State and integrated tax paid on those goods and compute the ITC allowed and state this value in the applicable tables. ITC allowed should be less than or equal to (=) 60% of Central Tax or 30% of Integrated Tax.

Step5.While filing Tran 2 of subsequent tax periods, the tax payer has to only declare the details of goods supplied/sold and the tax paid and ITC allowed. The opening stock gets auto-populated from the earlier tax period closing stock. And the closing sock is auto computed from the opening stock and the supplied quantity in the tax period.

Step6.Save after entering each record in tables of TRAN 2.

Step7.After entering all the records click “Preview” to download the pdf with draft summary values of TRAN 2. Verify the correctness of the entered data. If satisfied click “Submit” to freeze your declaration. Please verify thoroughly before submitting.

Step8.Download the summary of your submitted TRAN 2 for your record by clicking on “Preview” again.

Step9.Click on file with DSC or EVC and select the authorized signatory to file TRAN 2 for the tax period.

Step10.After successful filing the message and email with the ARN number will be sent to the taxpayer.

Step11.The claimed ITC of central and state tax would be reflected in the ITC ledger of the taxpayer after filing of TRAN 2. It has to be noted that the ledger entries get posted after filing of TRAN 2 and not “Submit” (as is/was the case in TRAN 1).

Source :- www.gst.gov.in


B S Sridhar & Co., Contact us @ 91-44-45540180 / 91-90804 33131. 

For Quick Response email :- sridharca@gmail.com

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