Tax evasion crackdown: Proprietors, LLPs, HUFs under CBEC scanner now
According to the sources, preliminary scrutiny indicated that several newly created LLPs and HUFs as well as proprietary firms have claimed transitional credit for which they were not eligible. The CBEC has already asked chief commissioners to scrutinise all transitional credit claims of over Rs 1 crore. As part of transition to GST last July, taxpayers were allowed to file Form TRAN-1 and avail tax credit on the basis of closing balance of the credit declared in the last return under the pre-GST regime.
Proprietary businesses, LLPs and HUFs, which took registration under GST between October 2016 and June 2017, have come under the scanner of CBEC for claiming input tax credit. Image source: