Traders must fix errors in GST by December 27

 The government has fixed December 27 as the deadline for businesses and traders to rectify their wrongful claims of input tax credit under the GST regime or face action.

It has come to the notice of the government that traders claimed higher tax credit when compared with their previous tax record, which has affected GST collections.

The government warned that it would initiate audit and enforcement action against traders if they fail to rectify anomalies within deadline.

The GST Cell in the Office of the Chief Commissioner of GST, Hyderabad, issued a press release on Monday.

“It has been noted that some taxpayers have availed extraordinarily high transition credit of CGST which is neither commensurate with the trend of input tax credit of the industry nor as maintained by the taxpayer himself in the past. Some of these high transitional credits may have a bonafide explanation or may be a case of bonafide mistake,” it said.

“It has been noted that high transitional credit has been claimed in many cases for which perhaps no bonafide explanation exists. Analysis to identify such traders is underway. Such behaviour leads to breach of trust between the tax payer and the tax administration, which is the bed-rock of self-assessment regime in GST,” noted chief commissioner Bankey Behari Agrawal.

Under the GST regime, a taxpayer could file Form Tran 1 and avail input tax credit on the basis of closing balance of the input tax credit declared in the last pre-GST return.

Source:http://www.deccanchronicle.com/business/in-other-news/191217/traders-must-fix-errors-in-gst-by-december-27.html

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