Published: Sat, September 23, 2017
Finance | By Loren Pratt

No revenue loss due to GST credit claims worth Rs 65000 crore

No revenue loss due to GST credit claims worth Rs 65000 crore

Ministry said that there were a lot of speculations in the media about the credit of Rs 65,000 crore claimed by taxpayers in respect of Central Excise and Service Tax in the pre-GST period.

"Therefore, the exporters, who have not yet filed form GSTR 1 for July 2017, may be advised to file it immediately and not to wait till the deadline", the statement said adding that the GSTN application for refund is also getting ready.

The committee on exports set up by the GST Council is looking at ways to ensure timely refunds, if necessary through a manual procedure, the ministry said. Through TRAN 1, individuals can claim the taxes they paid through various options available before July 1st.

The high claim had also led to apprehensions that the government would not have much left after these claims are adjusted.

Following the decision of the GST Council earlier this month, "these notifications also provide that this 5 per cent GST will, however, not apply if the person concerned voluntarily foregoes any actionable claim or enforceable right on such brand name", a Finance Ministry release said here on Friday.

It clarified that the credit claimed by taxpayers in the TRAN-1 form does not mean they would have used all of this credit for payment of their output tax liability for July 2017.

According to the ministry, Rs 1.27 lakh crore of credit of the central excise and service tax was lying as "closing balance" as on June 30, 2017. The announcements and the clarifications remove ambiguities revolving around Rs 65,000 crore, which is the credit claimed by the taxpayers. "The moot point is that the figure of Rs 95,000 crore of tax collected in August 2017 may go down as there will be available credits in the subsequent period".

The high figure of Rs 65,000 crore had prompted the Central Board of Excise and Customs (CBEC) to verify the transitional GST credit claims of over Rs 1 crore each made by 162 entities.

But for the strain incurred by the introduction of GST, the current fiscal situation did not leave any room for concern and channels had already been identified for meeting the cash requirements next month. However, a government notification, which came after that, stated that the original filing is allowed only till 28th September and revisions to the original filing will be allowed till October 31st.

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