Being confused by the input tax credit claims of over ₹65,000 crore for Central Goods and Services Tax (CGST) for July, the Central Board of Excise and Customs (CBEC) officials will verify such claims thoroughly.
These claims from the pre-GST era could have some impact on revenue collections from the new tax as many of these would have to be offset in the August’s payments.
Puzzled by the huge credit claims from the TRANS-1 statement, the Central Board of Excise and Customs (CBEC) has now asked its officials to verify claims of credit of over ₹1 crore.
TRANS-1 is the form that businesses had to file to claim transitional credit under GST.
“The credit specifically excluded under section 17(5) of the CGST Act is not eligible to be carried forward. The possibility of claiming ineligible credit due to mistake or confusion cannot be ruled out,” said the CBEC in a circular issued today asked its field formations to check that only eligible credit has been carried forward.
For the specified high value cases, officials have to check whether the credit claimed matches the closing balance in returns filed under pre-GST laws. A report has to be sent by September 20. The issue was first discussed at the meeting of the GST Council in Hyderabad earlier this month while reviewing the tax collections under GST.
