Companies Receive Notices Over Late ITC Claims
Corporate tax

The indirect tax department has released notices to various companies that have made late input tax credit (ITC) claims, thereby asking those companies to reverse the transactions accordingly. The concerned companies who had missed the September deadline and claimed ITC for fiscal 2018/2019 have received the notices.

“It is noted that you have filed returns for the discharge of your tax liability after the specified due date for availing (of) ITC. You are not entitled to take the input tax credit in respect to any invoice or debit note for the delivery of goods or services or both after the due date for the provision of returns”, reads a tax notice which was received by one of the companies.

Also Read: The e-invoicing system: Its journey since the inception of GST

Along with reversing the transactions, the companies have also been asked to pay interest on the credit that was wrongly claimed. The ITC is a mechanism via which firms can offset GST paid against future tax liabilities on input services or raw materials. The notices received by the companies could be challenged in court.

Various companies based in New Delhi, Maharashtra, Tamil Nadu, and West Bengal have received such notices. These firms can either choose to pay the amount or can challenge the demand in court. The CBIC has so far barred around Rs 40,000 crore worth of tax credits due to inconsistencies in return filings.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

You May Also Like

Taxation of dividend income received on or after 1 April 2020 (FY 2020-21)

You may receive a dividend from your equity or mutual fund investments.…
GSTR-9

CBIC has notified an extension of two months to various GST compliance

The government of India has notified yet another extension for the completion…
Gold Jewellery

24K Gold Rate in India for November 2019: Week 4

The fourth week began with the gold rate in India holding at…

Due date to file annual GSTR-4 for FY 2019-20 gets further extended

The government has further pushed the deadline to file the brand new…