Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: empanelment :: due date for vat payment :: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: VAT Audit :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARD
 
 
« GST - Goods and Services Tax »
 Benefit from GST probably won’t show up next year
 GST return filing simplification remains unresolved, GSTR-3B to continue
 GST council recommends reduced tax rates
 This is how ingenious traders find new ways to evade GST
 GST returns: Panel for single-stage filing process
 GST e-way Bill System rolled out on trial basis
 Six more states start trial for e-way bills under GST
 Section 51 Tax Deduction At Source Under GST
 Single GST form likely for service providers
 Insurance sector urges Finance Minister to reconsider GST rates in Budget 2018
 Panel against including all services in GST composition scheme

Nothing alarming about massive transitional GST credit claim, says finance ministry
September, 20th 2017

Finance ministry concludes that GST credit claims were for credit that firms had accumulated over a period of time and they would not be in a position to utilize it in one go

The massive Rs65,000 crore tax credit claimed by businesses in July while shifting to the goods and services tax (GST) regime is not a cause for worry as it will only be utilized by firms over many months, finance ministry officials said.

The ministry, which looked into the tax credit claims which accounted for two-thirds of the GST collection in the first month of the tax reform, has concluded that the claims were for credit that companies had accumulated over a period of time and they would not be in a position to utilize it in one go.

“Credit for excise duty paid in the earlier regime can only be claimed against central GST (CGST). The accumulated credit is much more than what can be claimed on manufacturing output in one month. There is nothing to be alarmed about,” said a finance ministry official, seeking anonymity.

The ministry had asked taxpayers to calculate their July tax liability after adjusting for tax credits that they wanted to utilize for the month. Experts said the GST receipts of Rs95,000 crore collected by Union and state governments for July may go further up as nearly a third of registered GST payers are yet to file returns and pay taxes.

“To ensure seamless GST credit, businesses registered for GST are asking unregistered vendors to register for GST. This acts as a self policing system and should result in a significant expansion of the tax base,” said Abhishek Jain, partner, indirect taxes, EY. The remaining assessees filing tax returns and paying taxes will also add to the tax revenue, added Jain.

The government is also working on a scheme to enable small traders with annual sales of less than Rs20 lakh—the threshold for GST registration—to register for GST under a simpler voluntary compliance system.

Central Board of Excise and Customs (CBEC), the indirect tax administration of the Union government, has already ordered audit of tax credit claims above Rs1 crore. CBEC had asked field officers to verify the large claims by 20 September, Mint reported on 15 September.

Experts said that unlike the earlier excise and service tax system, GST enables electronic matching of the taxes paid by a material supplier and the tax credit claimed by the buyer, which eliminates chances of fraud and tax evasion. As per this, tax credits claimed by a business will be honoured only if a raw material supplier, who has issued a tax paid invoice, has actually remitted the tax amount to the government.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions