Revise erroneous credit claims under GST by December 27: Government to taxpayers
The government has warned the industry to amend any inflated input tax credit claimed in lieu of taxes paid prior to roll out of goods and services tax (GST), failing
which it will initiate audit and enforcement action.
"Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1by December 27, 2017 and ensure that only correct
and bonafide credit is availed in transition, failing which the tax administration would be constrained to initiate audit and enforcement action against the identified
units," said a finance ministry statement on Tuesday.
The government has already ordered an analysis of the transitional credit taken by top 100 taxpayers in each jurisdiction. The central government's GST collections have
been muted, and one reason for the same is high input tax credit claimed for pre-GST regimes. The Centre's revenue on account of GST in July, August, September, and
October added up toRs 58,556 crore.
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