What parameters are CFOs
focusing on to avoid GST scrutiny?
What parameters are CFOs focusing on to avoid GST scrutiny?
Book a demo to find out!
Index

Taxpayers Worried About Missing ITC Column in GSTR-3B

Updated on: Jul 13th, 2021

|

1 min read

The flow of Input Tax Credit (ITC) is one of the backbones of the new economic reform that is GST. However, taxpayers who were hoping to have a seamless transition to the new regime are in for a slight shock.

The GSTR-3B form that was to be filed for the transition period of July-August does not have a column for carrying over ITC from the previous regime. If there is no clarification on this soon, companies may have to end paying the GST for the months of July and August in full, leaving them cash strapped for the rest of the year.

Experts say that the government has put in various rules for transition to GST, of which the carrying forward of ITC is an extremely important provision. In fact, even those companies that do not have proof of ITC (unregistered dealers in the previous regime) are eligible for 40% ITC on transitioning to GST.

Hence, the fact that the GSTR-3B form does not allow taxpayers to use available ITC to settle their tax liability goes against the spirit of the new tax system. If ITC is not made available for the transition period of July-August, it would mean a serious financial crunch for large companies (like those in the automobile sector) which have a huge chunk of money languishing as ITC. As reported in Economic Times

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption