GST Update on extension of dates for filing return and TRAN-1/TRAN-2:

The government issued number of notifications for extending the due date for filing returns in GST wherein as one time measure, the government has allowed filing of GSTR-1 for the months from July, 2017 to September, 2018 for all assessees to be 31.10.2018 without any late fees. However, the last date for filing GSTR-1 for the quarter, July, 2018 to September, 2018 with respect to registered persons in the State of Kerala and registered persons whose principal place of business is in Kodagu district in the State of Karnataka and registered persons whose place of business is in Mahe in the Union Territory of Puducherry shall be furnished upto 15th November, 2018. It may be observed that the due date of filing quarterly return for the quarter July, 2018 to September, 2018 has actually been pre-poned from 15th November, 2018 to 31.10.2018.
It is further submitted that the extension of the due date of filing GSTR-1 return upto 31.10.2018 will give rise to complications in availing input tax credit by the assessees. According to section 16(4) of the CGST Act, 2017, a registered person shall not be entitled to take input tax credit in respect of any
invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. This implies that the last date for availing input tax credit by the assessees is the last date of filing GSTR-3B for the month of September, 2018 being 20th October, 2018. However, the assessees are allowed to file GSTR-1 for the period July, 2017 to September, 2018 till 31.10.2018. Hence, this brings anomaly in the effective implementation of the provisions as the last date of availing input tax credit by the assessee is 20.10.2018 as per section 16(4) of the CGST Act, 2017 whereas the supplier can file GSTR-1 by 31.10.2018. It is worth pointing that notices are being issued to the assessees to reverse credit if the invoices are not being reflected in GSTR-2A. In above situation, if supplier files GSTR-1 on 30.10.2018, the question that arises is whether the assessee should avail the input tax credit with respect to invoices which are not reflected in its GSTR-2A as on 20.10.2018 or not? The due date for filing GSTR-1 has been fixed as 31.10.2018 without even considering that the last date for availing input tax credit is 20.10.2018.
Furthermore, the due date for filing of GSTR-3B by the newly migrated assessees under Notification No. 31/2018-Central Tax dated 06.08.2018 for the period from July, 2017 to November, 2018 has been extended as 31.12.2018. However, as per notification no. 31/2018-Central Tax dated 06.08.2018, it is stated that the newly migrated taxpayers shall be deemed to have been registered w.e.f. 01.07.2017. Moreover, the due date of filing GSTR-1 for all assessees including newly migrated assessees remains 31.10.2018. There can be practical difficulty in claiming credit by the recipients of goods/services supplied by newly migrated assessees if the registration is finally granted to such assessees after 20.10.2018.
It is also worth noting that the due date for filing TRAN-1 has also been extended vide Notification No. 48/2018-Central Tax dated 10.09.2018 as 31.03.2019 in respect of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and in respect of whom the Council has made a recommendation for such extension. Again, it is mentioned that there is discretion vested to the Commissioner to extend the due date for filing TRAN-1 where it is evidenced that the TRAN-1 could not be filed due to technical glitches. In our opinion, the due date should be extended for all assessees without any condition as such a provision is prone to dispute and litigation.
This is solely for the educational purpose.
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GST Update on extension of dates for filing return and TRAN-1/TRAN-2:

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