You are here: Home » Economy & Policy » News » GST
Business Standard

Govt might allow revised returns for input credit for pre-GST stocks

Unavailability of the form offline made it difficult for companies to punch in details manually

Dilasha Seth  |  New Delhi 

Hasmukh Adhia
Revenue Secretary Hasmukh Adhia

In a respite for companies with big claims of for pre-goods and services tax (GST) stocks, the government is likely to allow rectifications of returns filed. The revenue department is consulting the law committee on the matter.

Although companies have been given 90 days to file the 1 form to claim for stocks bought before July 1, the last date for filing it was August 28.

Unavailability of the form offline made it difficult for companies to punch in details manually, increasing the chances of under reporting or incorrect filing. No provision for rectification of transitional credit claims might mean companies losing credit.

“We are aware of the concerns with respect to rectification of returns. We are consulting the law committee to see if we can allow entities to revise their 1 form,” said a senior government official.

The 1 form requires a lot of details such as invoices, making manual filing prone to errors. The clarification will allow companies to rectify the errors they made.

Revenue Secretary said the matter was being looked into and a decision on rectification would be taken soon.

There were other companies that chose to wait for another month instead of filing incorrect claims, which affected their cash flow for the month. A company that Business Standard spoke to has a claim of Rs 200-300 crore, but did not file it.

“The clarification should ideally have come a little earlier, as the last date for filing 1 was August 28. Since it was not clear as to whether the return could be revised, a lot of companies have not claimed opening credit for July payment impacting their working capital requirements,” said Pratik Jain of PwC India. 

He added these companies would now claim transitional credit for tax payment of August. In fact, Jain said the Rs 92,283-crore revenue figure might include an amount that would otherwise be claimed as credit.

First Published: Wed, August 30 2017. 01:39 IST
RECOMMENDED FOR YOU