The blocking of input tax credit) under GST would be affecting businesses all over the state. As the city is the financial capital of the state, the majority of businessmen of the city would get impacted by it.
In front of the state, GST commissioner Lokesh Jatav several CAs, and tax consultants asked to resolve the problems on the same subject.
Chartered accountant JP Saraf, of Tax Practitioners Association, informed that Rule 86A of CGST Rules, 2017 issues the power to the commissioner or its officer to not permit the debt of the electronic credit ledger and restrict the credit based upon the faith that the credit of the input tax available in the electronic credit ledger is being claimed in a bogus way.
In the majority of the cases, the Input tax credit is restricted without seeing the facts of the case. Where the claim is being rightful, the same situation causes the issues for the taxpayers. However, the issues facing because of the default of their supplier. Businesses were forced to close down as the assessees can not furnish their return on the mentioned time. Also, the department is losing revenue.
Issues Suffered by the Composition Dealer
While filing the GSTR-4 for FY 21-22 which was to be furnished till 30th April 2022 the CA Saraf mentioned that the composition assessees are facing the issues because of negative liability. During filing the GSTR-4 (Annual) of any fiscal year if the assessee does not furnish the table 6 of the mentioned return, irrespective of the amount furnished via Form CMP-08s of the year was credited to the negative liability statement.
