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Government stumped after receiving GST credit claims worth 65,000 crore

Newspatrolling: Just a few days back, it was announced with much jubilation that Rs 95,000 crore has been received as GST for July with 64 per cent compliance. However, the government is now flummoxed as it has received credit claims worth Rs 65,000 crore from traders under GST. If all of these credit claims are found genuine, it would majorly dent the revenue that is being collected through GST. After government officials were taken aback by the huge credit claims, an inquiry has been ordered in the matter. The Central Board of Excise and Customs (CBEC) has directed all its officials to recheck all transactions that are more than Rs 1 crore. The CBEC is of the opinion that there is a possibility of ineligible claims that may have occurred due to mistake or confusion.

After the development was noticed by officials, Mahender Singh, Special Secretary and Member, CBEC has written a letter to all Chief Commissioners across the country. An excerpt from the letter reads, “The statement received from GST Network revealed that so far, the registered persons have claimed over Rs 65,000 crore as CGST transitional credit. The possibility of claiming the ineligible credit due to mistake or confusion cannot be ruled out. Accordingly, it is desired that the claims of credit of more than Rs 1 crore may be got verified in a time-bound manner.” The 65,000 crore credit claims are only for Central GST. It is possible that states too will have to carry out verification of credit claims under State GST.

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