The government has warned the industry to amend any inflated input tax credit claimed in lieu of taxes paid prior to roll out of goods and services tax (GST), failing which it will initiate audit and enforcement action.
“Taxpayers who have claimed transitional credit erroneously are advised to avail of the opportunity to revise Form TRAN-1by December 27, 2017 and ensure that only correct and bonafide credit is availed in transition, failing which the tax administration would be constrained to initiate audit and enforcement action against the identified units,” said a finance ministry statement on Tuesday. Click to read more
Centre flags ‘extraordinarily high transitional credit’, warns taxpayers at risk of losing authorities’ trust
The Centre urged taxpayers to correct their TRAN-1 forms to avail transitional credit under GST by December 27, failing which the government would be forced to initiate audit proceedings in cases of high credit claims.
The Finance Ministry said while it had received some claims for high transitional credit for which there were legitimate explanations, it had also noted that several claims were not bonafide. This behaviour, the ministry said, could erode the trust between tax authorities and the taxpayers. Click to read more
The finance ministry on Tuesday urged businesses to revise any wrongful claim of tax credits from the previous indirect tax regime saying that “extraordinarily high” claims unsettles the trust between firms and the tax authorities.
In a statement, the ministry warned that assessees who have erroneously claimed tax credit from the previous regime should correct them by 27 December, the last date for doing so, or face consequences. Click to read more
The government has advised taxpayers who have claimed transitional credit “erroneously” under the Goods and Services Tax to revise their incorrect forms by Dec. 27.
The government has asked taxpayers to ensure only correct and bonafide credit is availed in the transition to GST, failing which, the tax administration would be forced to initiate audit and enforcement action against offenders, finance ministry said in a press release.
It has been noted that some taxpayers have availed extraordinarily high transitional 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. Click to read more
The goods & services tax (GST) was implemented with great fervour by the government to usher in an effective indirect tax regime—by mitigating the cascading effect of myriad indirect taxes and to improve tax compliance. Befittingly, the implementation of this tax reform was eagerly followed by the industry as the new tax sought to create a homogenised market across India and aimed at aiding the trade to run businesses effectively.
GST, which was contrived with the idea of making a ‘good and simple tax’, has become a reality after more than a decade of push by the legislation. Given the size of the reform—with over 70 lakh taxpayers impacted—the government has done a commendable job in the roll-out of GST. Click to read more
From the day it was launched on July 1 , the implementation of the Goods and Services Tax has faced two sets of challenges. The first set of problems emerged from the fundamental flaw of having multiple tax slabs instead of a simple two-or three-tier tax system.
The other set of difficulties emerged from the need to file multiple tax returns and the cumbersome accounting most people engaging in the sales of services or goods are required to undertake. These troubles were accentuated by the online system through which all users have to file their returns. The software and IT system for GST is run and maintained by the Goods and Services Tax Network, a non-profit company in which the Union and state governments hold a 49% share. Click to read more
The GST has led to 10-12 per cent rise in overall cost of solar projects, the All India Solar Industries Association has said, while petitioning the government against the rise in tax incidence on solar power equipment under the new regime.
This will, in turn, result in increase in the cost of power, AISIA general secretary Gyanesh Chaudhary said in letters to Revenue Secretary and other senior government officials.
While solar power generating systems are charged 5 per cent tax, procurement and supply of equipment like module mounting structures, trackers, inverters, transformers and cables are being charged the GST at varying rates. Click to read more
The Indian government sees the goods and services tax (GST) as a transformative step that will benefit the entire economy. For benefits to reach the entire population, it is necessary for businesses that directly benefit from GST rate rationalization to pass them on to customers. The government had foreseen that many businesses may choose to retain the lion’s share of GST gains, leaving their customers to benefit marginally, if at all. This has become a significant concern with the recent reduction of GST rates on many items of mass consumption. The government has consequently approved the creation of a national anti-profiteering authority (NAA) and the supporting administrative machinery. Click to read more