As much as Rs 65,000 crore out of the nearly Rs 95,000 crore tax collections in July -- the first month of GST -- have been claimed as transitional credit by taxpayers, prompting the CBEC to order a scrutiny of all cases above Rs 1 crore.
The Goods and Services Tax (GST) regime, which kicked in from July 1, allows tax credit on stock purchased during the previous tax regime.
This facility is available only up to 6 months from the date of GST rollout.
The Central Board of Excise and Customs (CBEC), the body which deals with formulation and implementation of policy concerning the levy and collection of indirect taxes, in a letter dated September 11 has asked tax officials to verify GST transitional credit claims of over Rs 1 crore made by 162 entities.
In the transitional credit form TRAN-1 filed by taxpayers along with their maiden returns for July, businesses have claimed a credit of over Rs 65,000 crore for excise, service tax or VAT paid before the GST was implemented from July 1.
In light of such huge claims, CBEC Member Mahender Singh in the letter to chief commissioners said that as per 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... 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.
It asked the chief commissioners to send a report to the CBEC by September 20 on the claims made by these 162 companies.
To ensure only eligible credit is carried forward in the GST regime, the CBEC has asked field offices to match the credit claimed with closing balance in returns filed under the earlier law.
They are also required to check if the credit is eligible under the GST laws.
Till last week, as many as 70 percent of 59.57 lakh taxpayers had filed returns for July, amounting to maiden revenue of Rs 95,000 crore under the GST regime.
However, out of this, the input tax credit (ITC) data for Central GST (CGST) claimed in TRAN-1 has shown that registered businesses have claimed over Rs 65,000 crore as transitional credit.
The government, in late August, had come out with form TRAN-1 for businesses to claim credit for taxes paid on transition stock.
Traders and retailers had 90 days to file for a claim.
Also, businesses have been allowed to revise the form once till October 31.
PwC India Partner and Leader (indirect tax) Pratik Jain said the Rs 65,000 crore amount looks high, particularly given the fact that a lot of large companies have not yet submitted TRAN-1.
Under the transition rules, traders and retailers are allowed to claim a credit of 60 percent of taxes paid earlier against the CGST or SGST dues where the tax rate exceeds 18 percent.
In cases where the GST rate is below 18 percent, only 40 percent deemed credit will be available against CGST and SGST dues.
Further, the government would also refund 100 percent excise duty on goods that cost above Rs 25,000 and bear a brand name of the manufacturer and are serially numbered such as TV, fridge or car chassis.
To avail this, a manufacturer can issue a Credit Transfer Document (CTD) to the dealer as evidence of excise payment on goods cleared before the introduction of GST.
The dealer availing credit using CTD will also have to maintain copies of all invoices relating to buying and selling from the manufacturer, through intermediate dealers.
The GST Council today decided to keep only 50 items, mostly demerit, sin and luxury goods in top 28 per cent tax bracket. “Lower 18 per cent GST will be levied on chewing gums, chocolates, after shave, deodorant, washing power, detergent, marble,” Bihar Deputy Chief Minister Sushil Modi said. The all-powerful council pruned the list of items attracting the top 28 per cent tax rate to just 50 from 227 previously, Modi told reporters here. In effect, the council cut rates on 177 goods.
“There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items,” Modi said. He said all types of chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo, deodorants, washing powder detergent and granite and marble will attract lower 18 per cent tax rate.
“There was unanimity that in 28 per cent category there should be only sin and demerit goods. So, tod…
Consequences of incorrect invoice details uploaded while filing GSTR 1 What will be the consequences if incorrect invoice details are uploaded on GSTN Portal while filing GSTR 1? How any one canamend these details?
It is a very common question of every GST taxpayer that what would be the consequences if one encounters following mistake while filing his GSTR 1
• Mention the wrong GSTIN (For example the invoice is on the name of M/s A but mistakenly shown it as sale made to M/s B) • Mention wrong Invoice No. or Invoice date • Punched wrong Invoice value (Mistake is due to wrong data Punching)
As we all aware of the fact that GST Law doesn't provide any option to amend the GST Return. Therefore the taxpayers (especially small traders) are very much concern regarding consequences of clerical mistake committed while filling GST Returns specially GSTR 1.
However, Section No. 34 of CGST Act, 2017 provides that the person can issue a debit or credit note as the case may being fol…
Press Information Bureau Government of India Ministry of Statistics & Programme Implementation 12-September-2017 17:28 IST
Consumer Price Index Numbers on Base 2012=100 for Rural, Urban and Combined for the Month of August 2017 The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015. 2. In this press note, the CPI (Rural, Urban, Combined) on Base 2012=100 is being released for the month of August 2017. In addition to this, Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined are also being released for August 2017. All India Inflation rates (on point to point basis i.e. current month over same month of last year, i.e., August 2017overAugust 2016),based on General Indices and CFPIs are given as follows: All India Inflation rates (%) based on CPI (General) and CFPIIndicesAug…