‘Fix GST credit claims or face scrutiny’:

‘Fix GST credit claims or face scrutiny’:

Context

The Centre urged taxpayers to correct their TRAN-1 forms to avail transitional credit under GST by December 27, failing which the government would be forced to initiate audit proceedings in cases of high credit claims

What has finance ministry said?

• Fin Ministry said that while t had received some claims for high transitional credit for which there were legitimate explanations, it had also noted that several claims were not authentic. This behaviour could erode the trust between tax authorities and the taxpayers

TRAN revision deadline

The ministry urged taxpayers who had claimed transitional credit erroneously to revise their TRAN-1 forms by December 27, 2017, and ensure that only correct and genuine credit was availed , “failing which the tax administration would be constrained to initiate audit and enforcement action against the identified units”

TRAN-1 form

Under GST, a tax payer could file the TRAN-1 form and avail input tax credit on the basis of the closing balance of the input tax credit declared in the last return under the pre-GST regime. This was to be done on a self-declaration basis