Tax Authorities to scan transition credit claim of 162 companies under tax scrutiny

INDORE, India - Sept. 15, 2017 - PRLog -- Companies that have claimed Goods and service Tax (GST) transitional credit of over Rs.1.00  crore are under the scanner of tax authorities who would confirm whether the claims are eligible. As much as Rs 65,000 crore out of Rs 95,000 crore tax collections in July have been claimed as transitional credit by tax-payers.

The Central Board of Excise and Customs in a letter to chief commissioners said,  as per the GST law carry-forward of transitional credit is allowed only when such credit is permissible under the law.

The Central Board of Excise and Customs further emphasized the possibility of claiming disqualified credit due to mistake or confusion cannot be ruled out. It is desired that the claims of input tax credit of more than Rs 1.00 crore may be verified in a time-bound manner and asked the chief commissioners to send a report to the CBEC by Sept 20 on the claims made by these 162 companies.

To ensure eligible credit is carried forward in the GST rule, the Central Board of Excise & Customs has asked field offices to match the credit claimed with closing balance in returns filed under the earlier law. They are also need to check whether the credit is eligible under the GST laws.  Till last week, about 70% of 59.57 lakh taxpayers had filed returns for July, amounting to revenue of Rs 95,000 crore under the GST regime.

However, out of this, the input tax credit data for Central-GST claimed in TRAN-1 has shown that registered businesses have claimed over Rs 65,000 crore as transitional credit.

News by (Money Maker Research) http://www.moneymakerfinancial.com/