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Tax authorities to scan transition credit claim of 162 companies

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Tax authorities to scan transition credit claim of 162 companies
As many as 162 companies, that have claimed the goods and services tax (GST) transitional credit of more than Rs 1 crore, are under the scanner of tax authorities. They would verify whether these claims are eligible.

In the transitional credit form TRAN-1 filed by taxpayers along with their maiden returns for July, businesses have claimed credit of over Rs 65,000 crore for excise, service tax or VAT paid before the GST was rolled out from July 1.

In view of such huge claims, the Central Board of Excise and Customs (CBEC) in a letter to chief commissioners said according to the GST law, carry forward of transitional credit is permitted only when such credit is permissible under the law.

“The possibility of claiming ineligible credit due to mistake or confusion cannot be ruled out ,” CBEC said. CBEC asked the chief commissioners to send a report on the claims made by these 162 firms to it by September 20.

The Business Standard, New Delhi, 16th September 2017

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