GST network problem continues to haunt the trade
We are facing umpteen number of problem from the day GST has been in vogue, although i am not disputing whether GST should have come or not its really a welcome move which have helped in bridging the barriers between several indirect taxes into one fold, but rather on the way its being implemented and the way its handled now.
I would like to bring forward one such problem that i think all manufacturing companies are facing as of now. All companies have filed TRAN-1 and carried forward the cenvat credit lying in the books as on 30th June 2017. But for example in the GST regime some goods have been destroyed and are unusable which calls for reversal of the input credit claimed earlier and carried forward in TRAN-1.
Now the problem statement starts. We have claimed CGST credit in TRAN-1 and when we are trying to reverse the credit in GSTR 3B ( as GSTR-2 is only a myth and would never come the way it was proposed) we are forced to reverse CGST + SGST. TRAN-1 allowed only CGST credit carry forward and while reversal both the components are popping up.
Let me give an eg :
CGST credit carried forward for the lost/destroyed goods - 100
While reversal of the same in GSTR 3B :
- If we try to put CGST -100, SGST- 100 is coming up which we are not being able to do as excess reversal would happen.
2. CGST - 50, SGST - 50, also not possible as state government will get additional credit and the central government will not spare. :)