GST: Tax authorities to investigate transitional credit claims above Rs 1 crore
The new regime allows tax credit on stock purchased under the old rules up to six months from the day the GST was rolled out.
Individuals and business that paid the Goods and Services Tax have claimed nearly Rs 65,000 crore of the Rs 95,000 crore paid as transitional tax credit, The Economic Times reported. Subsequently, the Central Board of Excise and Customs has ordered tax authorities to scrunitise all claims above Rs 1 crore.
The GST regime allows tax credit on stock purchased under the old rules up to six months from the day the new system was rolled out. A member of the excise and customs board, Mahender Singh, wrote to chief tax commissioners across the country on September 11, calling for restrictions on carrying the transitional tax credit forward.
“The possibility of claiming ineligible credit due to mistakes or confusion cannot be ruled out,” Singh said. “It is desired that claims of more than Rs 1 crore be verified in a time-bound manner.”
The CBEC also asked chief commissioners to submit their report by September 20.