Govt to assess input tax credit claims of Rs 60,000 crore in GST

The government is in the process of checking the veracity of the around Rs 60,000 crore of claims made by entities for stocks before the implementation of the goods and services tax (GST). Of the Rs 95,000 crore of revenue collected in July, around Rs 62,000 crore has been claimed as input tax credit for taxes paid for the period before July 1, startling the government. “We need to verify if the claims filed are genuine. The number appears to be quite huge with respect to the tax collected,” said a senior government official. 

The input tax credit for the transactional period has been claimed through the TRAN 1  form. Companies had a 90 days period from July 1 to claim credit for excise duty already paid on inputs.

The GST Council had allowed companies to claim 100% input tax credit by uploading excise payment invoices for the period before July 1. In case of unavailability of invoices, the council had allowed 40% input tax credit. 

In fact 40% tax credit limit has been increased to 60% on the items where a tax rate above 18% at the June 4 meeting. #casansaar (Source - Business Standard)