The Finance Ministry has granted permission to the businesses to claim input tax credit benefit for the first financial year of Goods and Services Tax roll out, till March 2019. The condition put is that the data in the input tax credit should match with the return filed by their suppliers. The deadline which has been decided for claiming the input tax credit (ITCNSE 0.74 %) ended on October 25, 2018.
The Tax experts on this matter said that businesses were allowed to claim ITC earlier, provided businesses had generated a proper invoice for the time of sales, had paid taxes and filed returns. But it is not the same in the current scenario. In the recent order, the CBIC has mandated that ITC claims should be matching GSTR-2A.
GSTR-2A is an auto-generated form which is generated by the system based on sales returns filed by suppliers.
An order has been issued by The Central Board of Indirect Taxes and Customs (CBIC) through a gazette notification that ITC claims for the maiden year of Goods and Services Tax (GST) rollout (July 2017 to March 2018) would be allowed till March 31, 2019.
Permission has also been granted by the CBIC to the Businesses to get the errors rectified if any in the filing of final sales return or GSTR-1 for the period July 2017-March 2018.
Now, it has proved to be a great benefit to the businesses that they can correct the errors in the returns to be filed for January-March 2019.
AMRG & Associates Partner Rajat Mohan said “this relaxation would find favor with millions of taxpayers who would collectively claim a tax credit worth billions of rupees. This respite together with a recent rationalization of tax rates is expected to mark a dent in tax collection of the next 3 months”. JD DRR
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