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  1. High input tax credit claims hit GST revenues

High input tax credit claims hit GST revenues

In the first month under the GST regime, government’s revenue collection has remained muted due to high level of input tax credit claims filed by the taxpayers for the transitional period. Taxpayers claimed over Rs 65,000 crore as input tax credit for the first month, while the total tax collection for the month of July was at nearly Rs 95,000.

By: | Published: September 18, 2017 6:00 PM
sushil modi, sushil modi on gst, gst in bihar, bihar gst Government’s revenue collection has remained muted due to high level of input tax credit claims filed by the taxpayers. (Twitter)

In the first month under the GST regime, government’s revenue collection has remained muted due to high level of input tax credit claims filed by the taxpayers for the transitional period, ET Now reported today citing unidentified government sources. Taxpayers claimed over Rs 65,000 crore as input tax credit for the first month, while the total tax collection for the month of July was at nearly Rs 95,000, leaving merely Rs 30,000 crore as revenue with the government.

The revenue collections are also believed to have been low as the GST council increased the availability of input credit limit from 40% to 60%, in case of goods attracting 18% or more GST.

The GST regime, which kicked in from July 1, allows tax credit on stock purchased during the previous tax regime. Under this facility, one can reduce the tax that has already been paid on input from the tax payable on the output. The government gave six-month to claim the input credit.

In July, nearly 70% of eligible 60 lakh taxpayers have filed returns. The CGST revenue stood at nearly Rs 15,000 crore, SGST nearly Rs 23,000 crore while while integrated GST collections stood at Rs 47,000 crore. The government collected over Rs 7,000 crore from assorted cesses — designed to compensate the states.

On Spetember 9, the GST council extended the last date for filing final returns by a month to October 10. Also, for easier compliance, the council allowed businesses to file simplified GSTR-3B for four more months till December.

At the 21st GST Council meeting in Hyderabad earlier this month, Revenue Secretary Hasmukh Adhia said for companies with turnover of over Rs 100 crore, the last date for filing GSTR-1 will be October 3. For the rest, it will be October 10. Also, filing of GSTR-2 for July will have to be done by October 31, and GSTR-3 by November 10.

Date of GSTR 1, 2, 3 returns filing for the month of August will be informed later, he said. Till Spetember 8, over 45 lakh GSTR-3B, 17 lakh GSTR-1 and over 13 crore invoices have been filed on the GSTN portal. Due to huge rush of July GSTR-3B return filing, the GSTN software had witnessed some glitches and the last date of filing had to be extended.

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