A whopping Rs 65,000 crore out of the nearly Rs 95,000 crore Goods and Services Tax (GST) collections in July has been claimed as transitional credit refund by traders and now the tax authorities
are preparing to probe the taxpayers claim.
The Central Board of Excise and Customs (CBEC) has asked its officials to verify all transitional credit claims for more than Rs 1 crore made by 162 entities as it does not rule out ineligible claims due to mistake or confusion.
The GST, which came into effect on July 1, allows tax credit on stock purchased during the previous tax regime. This facility is available only up to 6 months from the date of GST rollout. In the transitional credit form TRAN-1 filed by taxpayers along with their maiden returns for July, businesses have claimed a credit of
over Rs 65,000 crore for excise, service tax or VAT paid before the GST was implemented from July 1.