New Delhi – A company which has paid ₹ 100 crores in credit in the previous regime, now fears to lose the credit now after GST implementation. The loss might take place due to the online tax filing process.

With the deadline for tax filing coming closer and the ensuring compliances, the corporate houses are concerned. The offline value of the GST form TRAN 1 will be used for claiming input tax credit, for the period before GST implementation. However, till Sunday the utility had not been available. This left just one day for the tax filing. The move had caused a huge weekend rush.

Without the availability of the utility, the details had been filed online under significant risk as the chances of making errors had been high. Tax practitioners had to struggle in the process of meeting deadline. They were forced to deploy extra workforce to deal with the documentations manually.

What has given rise to the worry of the corporate is – the inadequacy of clarity of whether in future TRAN 1 could be revised for human errors or not. If the form cannot be revised, it would mean losing the tax credit.

The GST Council has already extended GST tax filing deadline once before from 20th August to 28th August. The move had been taken for those who are looking for transitional credit.

Offline utility reduces the chance of making errors because it allows the details entry, scrutiny and then submission. However, the online filing does not offer any such facilities and thus exposes the taxpayers to the risk of making errors.

The company has already made some errors in the tax filing, and they are worried that the input credit would be lost. The taxpayers are asked to provide every detail separately. It can be invoice wise or if possible challan wise. These could be pertained to ask for VAT on capital goods.

For some companies, the details would go on for thousands of lines. The problem would be the taxpayer would have to type each line separately while filing online. Additionally, TRAN 1 would have to be submitted for individual jurisdictions. The lack of offline utility has become a matter of concern.

The GSTN is said to be working hard and overtime to make sure that the IT requirements related to compliance are met.

The corporate houses, however, demand that the GSTN organizes a tech audit. The association of the traders also asked the government to organize a tech audit to address the filing issues.

Postpone Compliance

The taxpayers are urging for fully ready GSTN software. The request for the pushed forward companies is making a date. Several businesses after filing the tax have realized that they might have made some errors and a revision is needed.