Notification No. 22 /2018 – Central Tax: As a relief for those taxpayers who failed to file their GST-3B summary returns for October 2017 to April 2018, the Government has waived off the late fee charge. The benefit, however, is limited to only those taxpayers who could not fill the TRAN-1 form to avail input credit on closing stocks till December 27, 2017. Accordingly, these traders were unable to file GSTR-3B returns also. The reason for the delay is being attributed to the technical glitches and delays in the GST portal. Reportedly, nearly 30% of the registered traders under GST had failed to file their GSTR-3B returns for the month of March 2018 before the April 20 deadline.
As per the Finance Ministry, taxpayers must meet some conditions in order to avail the fee waiver. Traders who failed to file TRAN-1 before 27th December can now do it till May 10, 2018, if and only if they file the pending GSTR-3B for October 2017 to April 2018 period by May 31, 2018, positively. As per experts, this a welcome move which brings huge relief for thousands of traders. However, experts have sought clarity for those business owners who filed the pending GSTR-3B coupled with late fees. A refund for such taxpayers would be a positive step forward.
Traders who had missed TRAN-1 in December stood to lose input tax credit on the sale of pre-GST stocks. Accordingly, requests and appeals were made by the traders in their respective state courts. While hearing to one such petition, the Bombay High Court had ruled that the Government must allow traders who were plagued by technical errors and glitches to file the TRAN-1 by May 10th.
The Government however in a proactive move has already waived the late fees implied on GSTR-3B returns for July to September 2017. Barring any legal compulsions, the TRAN-1 filing date has also been extended to May 10, 2018. Traders who can now claim input tax credit on pre-GST stocks post meeting legal conditions must be having a huge sigh of relief.
