The GST Council has recently extended the input credit claim period from 60 days to 90 days. This change provides businesses more time to claim input tax credits on their transition stock, which is particularly important for traders and retailers who need to adjust to the GST framework. The extended period alleviates the pressure of potentially losing out on credits due to tight deadlines, allowing businesses to manage their inventory and compliance more effectively.

The extension of the input credit claim period to 90 days is a significant relief for traders and retailers. It enables them to adapt to the GST system at a more manageable pace, reducing the risk of forfeiting valuable input tax credits. Many businesses handle large inventories, and the previous 60-day limit was often too restrictive. With the new timeframe, companies can better align their accounting practices, ensuring they capture all eligible credits without the added stress of a tight deadline.

Under the new GST guidelines, deemed credit rates vary based on the Integrated Goods and Services Tax (IGST) rate applicable to goods sold. If the IGST rate exceeds 18%, businesses can claim a deemed credit of 30%. However, if the IGST rate is 18% or lower, only a deemed credit of 20% is available. This structured approach aims to simplify the claiming process for businesses, making it clearer how much credit they can receive based on the applicable tax rates.

The previous 60-day claim period was viewed as restrictive mainly because it put considerable pressure on businesses to quickly adjust to the new GST framework. Many traders and retailers need time to process their transactions, gather documentation, and ensure compliance with the new tax system. This tight window often led to anxiety about missing out on potential input tax credits, which can significantly impact a business's cash flow and financial health.

To ensure compliance with the new GST regulations, businesses should take proactive steps such as reviewing their inventory records and understanding the new input credit claim process. It's crucial to maintain accurate documentation of all transactions and expenses to facilitate the claiming of credits. Additionally, businesses should stay informed about any further changes to GST policies and consider consulting with financial advisors or tax professionals to navigate the complexities of the GST landscape effectively.

Yes, there are several resources available for businesses looking for assistance with GST compliance. Online platforms, such as CompaniesInn, offer valuable guides on various aspects of business registration and compliance, including the MSME Registration Process and how to register a private limited company in India. Additionally, businesses can seek legal support from professionals who specialize in GST compliance to ensure that they meet all regulatory requirements effectively.