New Delhi, September 22, 2017
The Finance Ministry on Friday said that revenue from goods and services tax (GST) in July will not come down due to the high claims of transition credit.
The tax mop-up from GST in July is estimated at about Rs.95,000 crore from 46,000 businesses, while the government has received claims of transition credit for Central GST of Rs.65,000 for the period. “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 the closing balance June 30,” said the Ministry.
Further, 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, it said.
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 the Central Board of Excise and Customs is examining the transition credits,” said the Ministry, adding that some assessees would have committed mistake in filing the form, because of which the government has allowed revisions till the middle of October.The GST Council has already extended by a month the date for filing TRAN-1 form till October 31.
[The Hindu Business Line]