Dear All,
Respected Members.
This query is about the refund claim once the service tax (in our case) credit is transferred to GST through TRANS 1 form.
Problem is...
1. We have a significant amount of credit lying under CGST (showing in credit ledger) but that is up to the period of July 2017 on which GST do not have any provision of claim online or offline.
2. We already know that it can be offset and utilized against the future domestic sales tax laibility but we are not doing any domestic sales and doing only export of service from last three years which is fully exempt. In such scenario we are not in position to claim CGST credit.
3. Now when if we visit GST dept. the officials are clueless about this condition and tell us to claim against future tax laibilty and confirms that there is no provision as such available yet and are not in mood of doing any help.
Following is the channel for your understanding
Company A have service tax credit of huge amount due to structure of only 1 to 5% domestic sales over number of years <------> this company did not claimed this amount before Gst introduced <--------> this company transferred all CGST (service tax) credit to GST through TRAN 1 <-------> after transfer to GST credit is showing in credit ledger under CGST <-------> now GST website or administration have no procedure to claim such credit as a refund to bank account of company.
A small scale company like us which has turnover below 1.5cr. have a CGST credit of 26 lacs laying under Govt tax dept is effacting expantion, working capital, debt management of compney very badly.
Request you all to please send your views and help to proceed with proper channel to file a refund claim.
Thanks.
CAclubindia
