The government on Wednesday warned that the taxpayers under GST would face audit and enforcement action against them if transitional credit claimed in TRAN-1 turn out to be incorrect with malafide intention. The taxpayers can revise their credit claims till December 27 in the same form, the government said. Transitional credit is a form of ITC, which is available to assessees in lieu of pre-GST taxes paid on the stock that was carried over for transaction in the GST regime. “Transition to GST provided for trust-based transition of input tax credit of the existing taxpayers. A taxpayer could file Form TRAN-1 and avail input tax credit on the basis of closing balance of the input tax credit declared in the last return under the pre-GST regime,” the government said.
Errant taxpayers may face audit
The government on Wednesday warned that the taxpayers under GST would face audit and enforcement action against them if transitional credit claimed in TRAN-1 turn out to be incorrect with malafide intention.
This article was first uploaded on December thirteen, twenty seventeen, at forty-nine minutes past five in the morning.