FinMin dispels concerns over high GST transition credit
The finance ministry today sought to dispel concerns about Rs 65,000 crore transitional credit claims saying that the Centre's revenue kitty will not go down because of these claims.
Over 46 lakh businesses have paid taxes to the tune of Rs 95,000 crore in July.
However, businesses also claimed credit for past taxes paid in the form of excise and service tax worth Rs 65,000 crore.
The finance ministry in a statement said this figure of transition credit claimed is also "not incredibly high" since Rs 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on June 30, 2017.
It said the credit claimed by taxpayers in the TRAN-1 form does not mean that they would have used all of this credit for payment of their output tax liability for July 2017.
Also, some of the credits, which are claimed in TRAN-1 form may be under litigation and therefore, it may not be available to the assessee to carry forward or for utilisation.
"It is from this angle that CBEC is examining the transition credits, which are claimed by assessees in TRAN-1 form in certain cases," the ministry said.
It said some assessees would have committed mistake in filing the form and hence the government will allow facility of revision of TRAN-1 by middle of October.
The GST Council has already extended by a month the date for filing TRAN-1 form till October 31.
The ministry said Rs 95,000 crore collected as July GST is the amount actually paid in cash other than availing credit.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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