Union Budget 2018: Govt may announce extension on transitional tax credit scheme

New Delhi: Government may announce an extension in its transitional tax credit scheme, offering massive relief to companies against their goods and services tax (GST) liability.

As per Zee Media sources, Finance Minister Arun Jaitley may announce this while presenting the Union Budget on February 1.

Sources said, transitional tax credit scheme may be extended till June 30 2018. The last date for filing of Form TRAN-1 was December 27.

TRAN-1 is to be filed by those businesses that are keen to claim credit for taxes paid before the launch of GST on 1 July.

The source further said, given that it is not possible to amend the GST Act, the government could bring a finance bill to make changes.

Many companies have reportedly not got  transitional credit called TRAN-1 on goods they bought before GST implementation.

Several big companies will knock the doors of the High court over the losses incurred due to transitional credit against their GST tax liability, sources had earlier said.

Official data has showed that falling for the second consecutive month, the total revenue collected under GST touched Rs 80,808 crore in November -- down from Rs 83,346 crore in October, possibly also due to the large scale rate cuts made last month.