New Delhi, September 16: The Union government had recently boasted that it collected Rs 95,000 crore as revenue a month after the Goods and Services Tax (GST) was implemented. To the government’s shock, taxpayers have filed for transitional credit claim to the tune of Rs 65,000 crore out of the total sum collected. The government has set up a probe in this regard. Also Read - High Petrol, Diesel Prices Burden on Consumers; Tax Cut Should be Joint Call of Centre, States: FM
According to a report, the Union government will probe the records of 162 companies that had filed GST return over Rs 1 crore. The Central Board of Excise and Customs (CBEC) has written to the chief commissioner that the transitional refund will only be accorded if provision for this was there in the GST rulebook. CBEC officers believe that the high value of refund demanded by taxpayers could be due to confusion or error. The verification for claims over Rs 1 crore will be conducted in a time-bound manner. Also Read - CAIT Announces Nationwide Movement Against New Amendments in GST and E-Commerce
“The possibility of claiming ineligible credit due to mistake or confusion cannot be ruled out… It is desired that the claims of ITC (input tax credit) of more than Rs 1 crore may be verified in a time-bound manner,” the CBEC emphasised. Also Read - Bharat Bandh Today Against GST, Petrol Price Hike, E-way Bill: What to Remain Shut, What’s Not | All You Need to Know
CBEC officers are asked to furnish a report on September 20 regarding these refund claims. Only legitimate claims will be forwarded for further action.
GST was implemented on July 1. Tax credits were offered on the sale of existing pre-GST stocks. This facility was made available till six months of the implementation.