Companies may have to show ledgers for claiming GST credit of over Rs 25 lakh, says report

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Companies that availed of more than Rs 25 lakh credit under the goods and services tax (GST) regime in lieu of levies paid under the previous system will soon have to give details of their purchase ledgers for six months before the new tax regime was rolled out, The Economic Times reported. The government will soon bring out a new ‘credit growth return’ form, said the report, adding that this comes after a detailed analysis of the top 50,000 taxpayers showed a sharp rise in the closing balance of credit of many at the end of June last year compared with September 30, 2016. These top 50,000 taxpayers have claimed about Rs 1.5 lakh crore worth of credit, said the report.

The Economic Times report quoted an unnamed government official as saying the form would be notified soon. Companies that have shown more than a 25 percent jump in credit between October 2016 and June 2017 will also have to share these details, and this form will be restricted to central GST as states captured purchase details under the value added tax (VAT) regime, according to the report. The move implies that tax authorities are looking to turn up the heat as collections of GST, which was rolled out on July 1 last year remain far from buoyant, said the report. There is a worry that companies may have claimed more credit than they were entitled to, leading to suppressed GST revenue, the report added.

Read More at: https://www.cnbctv18.com/economy/companies-may-have-to-show-ledgers-for-claiming-gst-credit-of-over-rs-25-lakh-says-report-967581.htm