Companies rush to match input tax credit with vendor returns

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Indian companies are scrambling to retain hundreds of crores of input tax credit for last financial year under the Goods and Services Tax (GST) regime that it could lose if it fails to substantiate the claim with vendor returns. The deadline to file this claim is October 20, while vendors can file their sales return till October 31. This has created a situation where vendor returns are not available for reconciliation.

Industry associations have represented to the government seeking an extension of the deadline. “In the event the tax authorities insist on disallowing input tax credit based on a cut-off date referenced to filing of GSTR-3B, taxpayers will be denied the opportunity of availing input tax credit to which they are rightly entitled to as per the provisions of the Act,” industry body Assocham said in its representation to the finance ministry.

Read More at: https://economictimes.indiatimes.com/news/economy/policy/companies-rush-to-match-input-tax-credit-with-vendor-returns/articleshow/66251286.cms