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FinMin dispels concerns over high GST transition credit of Rs 65,000 cr

Over 46 lakh businesses have paid taxes to the tune of Rs 95,000 crore in July

Press Trust of India  |  New Delhi 

GST. Illustration: Ajay Mohanty
Illustration: Ajay Mohanty

The on Friday 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 worth Rs 65,000 crore.

The in a statement said this figure of claimed is also "not incredibly high" since Rs 1.27 lakh crore of credit of and was lying as closing balance as on June 30, 2017.

It said the credit claimed by taxpayers in the form does not mean that they would have used all of this credit for payment of their output liability for July 2017.

Also, some of the credits, which are claimed in 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 form in certain cases," the ministry said.

It said some assessees would have committed a mistake in filing the form and hence the government will allow facility of revision of by the middle of October.

The Council has already extended by a month the date for filing form till October 31.

The ministry said Rs 95,000 crore collected as July is the amount actually paid in cash other than availing credit.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, September 22 2017. 16:49 IST