Amidst a lot of ambiguities, the government finally decided to give clarification and extended the deadline for filing GST TRAN 1 to October 31. A notification under rule 117 of the Central Goods and Services Tax Rules, 2017 was issued on behalf of the government to make the necessary modifications.
Deep confusion took place after the statement of GST Council which stated that the date to file TRAN 1 has been duly extended to October 31. However, another government notification followed this press note and it was phrased in a manner which intended that the taxpayers could file TRAN 1 only by September 28 and only amendments to what was already filed could be made till October 31.
This led to a lot of ambiguities among the taxpayers who were depending on the press note and notification provided by the government. To bring relief among the anxious taxpayers, GST’s official Twitter handle declared that no extension towards filing TRAN 1 has been made. This steered a last minute rush among people. All of this confusion was the result of the first notification which was only issued under rule 120 (A) which only extended the closing date for revisions and not the filing of original TRAN 1. The government has taken the necessary steps to correct the anomaly by incorporating changes in rule 117.
The notification said, “On the recommendation of the Council, the period for submitting the declaration in Form GST TRAN-1 is extended till October 31st, 2017.”
"This is aligned with the decision made by the Council and has brought relief to many taxpayers who otherwise would had to do a rush filing in a week's time with festivals coming up during next week," KPMG, Partner, Priyajit Ghosh, stated.
TRAN 1 is one of the most vital documents for the taxpayers as it empowers them to compute the tax benefits and input credits that were accessible to them under the former tax regime of indirect taxes which included VAT, Service Tax and Excise Tax. Till the end of 30th June, every facet of the business had certain implications and the businesses can now claim the credit on the taxes which have previously been paid by means of TRAN 1.