One question every tax payer is asking is : how do I take transitional input credit before filing GSTR-3B for the month of July, 2017. There have been media articles describing this worry by businesses. No wonder, taxpayers have been tweeting to the Government as well for an answer. There have been a spate of tweets with replies and solutions. An all of them have resulted in utter confusion in the mind of tax payers.
After reading this reply on Aug 07, tax payers heaved a sigh of relief. ITC would be available and they will not be subjected to additional cash flow. How, it will be available, was not clear from this tweet.
Then in a webinar on Aug 09 by GSTN, it was made clear that transitional credit cannot be entered in GSTR-3B and it has to be entered in TRAN-1. Resulting into more tweets from taxpayers seeking clarification.
Transitional ITC cannot be taken in GSTR-3B and it will flow only from TRAN-1. Hence it is very clear that unless TRAN-1 is filed, transitional credit will be available. Next big question is when TRAN-1 will be available?
Availability of TRAN-1 was promised mid August. The big question in tax payers mind is weather if it will be before Aug 20, before filing of GSTR-3?
The author is a veteran entrepreneur and has spent the last two decades working in the field of compliance automation and can also be reached on firstname.lastname@example.org.