TRAN-1 allows traders to claim input credit from the previous indirect tax regime.
An earlier order dated September 18 said the due date for filing revised TRAN-1 was extended up to October 31 only in cases where original TRAN-1 was filed before September 28.
"The revised order clearly states that the period for submitting TRAN-1 is extended up to October 31. Given this, for the time being, taxpayers can breathe a sigh of relief," Jigar Doshi, Partner, SKP Business Consulting, told IANS.
Goods and Services Tax (GST) expert Pritam Mahure, however, said, "The details required to be filled in TRAN-1 are voluminous and festivals like Dusshera and Diwali holidays are lined up in October. It will be advisable that the taxpayers initiate TRAN-1 preparation at the earliest."
The government has so far received transitional credit claims worth a whopping Rs 65,000 crore from traders.
Listing out the key reasons for the staggering claims of transitional credit, Mahure said: "One, it could be pertaining to closing stock lying with the manufacturers and traders (such as cars and electronics lying with dealers). Second, in certain cases, due to invert duty structure (mainly in pharmaceutical industry), many taxpayers had substantial excise duty credit balances, which may have been claimed as transitional credits. Third, the government had allowed traders to avail excise duty credit on the one-year-old stocks, which was not available to them earlier."
Experts also suggested that traders should themselves review their claims, before the government initiates scrutiny and subsequent action.
"The government seems to have concerns with input tax credits claimed in TRAN-1 forms by taxpayers and thus, it is advisable that the taxpayers should immediately get these credits independently reviewed to avoid subsequent penal implications on inadvertently claimed credit," Doshi said.
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