Companies with high input tax claims under lens

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Indian businesses that paid most of their goods and services tax (GST) liability using input tax credit or reported a significant variation in turnover are being queried by taxmen, a move that has irked industry and prompted it to petition the authorities against such tactics. Tax officials have sent emails seeking information from businesses that paid over 95% of their dues using input tax credit to ascertain the key factors responsible for subdued GST collections.

These queries relate to a large  variation in turnover reported, negative growth in central GST liability & a wide divergence in input tax credit between GSTR-2A and GSTR-3B. In some centres, businesses have been even asked to furnish tax payment challans. GSTR-2A and GSTR-3B are return forms. The first includes all information related to purchases, the second is a simplified return form aimed at making life easier for filers. GST was rolled out on July 1, 2017.

Read more at: https://economictimes.indiatimes.com/news/economy/finance/companies-with-high-input-tax-claims-under-lens/articleshow/68348953.cms