New Delhi: Transitional credit claims valued a whopping Rs 65,000 crore received from traders under GST have amazed the government. Now the tax authorities are preparing to check the validity of claims of over Rs 1 crore by traders.
The Central Board of Excise and Customs (CBEC) has advised its officials to verify all transitional credit claims for more than Rs 1 crore as it does not rule out ineligible claims “due to mistake or confusion”.
In case, ff the entire Rs 65,000 crore transitional credit claims are found real, it could burn a deep hole into the estimated revenue collections under GST. Apart from transitional credit, government would also receive claims for input tax credit, the figure of which is not yet known.
Finance Minister Arun Jaitley had said that the government had collected Rs 95,000 crore as GST for July with 64 per cent compliance.
“The statement received from GST Network revealed that so far, the registered persons have claimed over Rs 65,000 crore as CGST transitional credit. The possibility of claiming the ineligible credit due to mistake or confusion cannot be ruled out.
Accordingly, it is desired that the claims of credit of more than Rs 1 crore may be got verified in a time-bound manner,” Mahender Singh, Special Secretary and Member, CBEC, has written in a letter to Chief Commissioners across the country.
A list of assessees in the Delhi region, who have claimed more than Rs 1 crore as credit in their Tran-1 showed a firm even claiming up to Rs 228.82 crore as transitional credit.
The transitional credit claims of Rs 65,000 crore are only for Central GST. The states may also follow a similar examination and verification process of claims received under State GST.