The Input Credit Mechanism is available to manufacturers, supplier, agents, e-commerce operators and aggregators covered under the GST Act to claim input credit or reimbursements on tax paid by them while purchasing inputs like raw materials, hardware or software required to create a finished product or offer a service. Under goods and services tax, tax credit is allowed on stock purchased during the previous tax regime for a period of six months from 1 July. This facility is available only up to 6 months from the date of GST rollout.
The Central Board of Excise & Customs (CBEC) on Friday sent out a ray of hope for service providers who may have lost a market in Nepal owing to the imposition of 18 per cent goods and services tax (GST) from July 1. "The possibility of claiming ineligible credit due to mistake or confusion can not be ruled out..." 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. As per the relevant rules, transitional credits could be claimed both on an actual (input) tax-paid basis with sales as a precondition and as deemed credit.
If the entire Rs 65,000 crore transitional credit claims are found genuine, it could burn a deep hole into the anticipated revenue collections under GST.
Although the government believes these "transitional" ITC claims are abnormally high, tax experts don't find anything seriously amiss.
Rescued Indian priest thanks Modi government
Emotions under control until now", the 59-year-old priest said. "I prayed to God to be merciful". He was transferred several times during his captivity, but he does not know where he was held.
GST, which kicked in from July 1, allows tax credit on stock purchased during previous tax regime. Moreover, to ensure that the eligible credit is carried forward under the GST regime, CBEC asked field offices to match the credit claimed with the closing balance in returns filed under the earlier law, PTI reported. Till last week, as many as 70 per cent of 59.57 lakh taxpayers had filed returns for July, amounting to maiden revenue of Rs 95,000 crore under the GST regime. CBEC has in a letter to all chief commissioners said that carry forward of transitional credit is permitted only when such credit is permissible under the GST law and in the light of such huge claims the issue has to be closely looked into.
Traders and retailers had 90 days to file for a claim.
"The government seems to have concerns with input tax credits claimed in TRAN-1 forms by taxpayers and thus, it is advisable that the taxpayers should immediately get these credits independently reviewed to avoid subsequent penal implications on inadvertently claimed credit", Jigar Doshi, Partner, SKP Business Consulting, said. With the extension of deadline for TRANS-1 by a month to October 31, the claims are set to be higher.
Under the transition rules, traders and retailers are allowed to claim a credit of 60 per cent of taxes paid earlier against the CGST or SGST dues where the tax rate exceeds 18 per cent.
- HollyFrontier Corporation (NYSE:HFC) Stock Traded Over Its 50 Day Moving Average
- White House expected to preview Trump's first United Nations summit
- Parsons Green bombing: Foster couple's home in Surrey searched by terror police
- People rescue manatees stuck in bay drained by Irma
- NVIDIA Corporation's (NVDA) Buy Rating Reaffirmed at Jefferies Group LLC
- Flipkart Confirms iPhone 8 Pricing And Pre-Order Dates
- Pakistan, Turkey agree to continue unconditional cooperation
- Mercato - Malcom a failli signer à Marseille !
- Congressman Mo Brooks endorses Roy Moore at Huntsville rally
- This throw by Josh Rosen is why National Football League scouts are drooling