The GST Council is expected to revisit input tax credit (ITC) on motor vehicles at its next meeting, while a committee of officers will examine the rule governing credit claims when suppliers fail to pay tax to the government, Balasubramanian Krishnamurthy, Joint Secretary (TPRU, ST&FATF), Department of Revenue, Ministry of Finance, said on Monday.
Speaking at an event organised by the Bangalore Chamber of Industry and Commerce (BCIC), Krishnamurthy said the motor vehicle issue had been discussed at the Council, but a decision could not be reached as some states had raised concerns. He added that the matter would be taken up again at the next meeting, which he expected would be held within three months.
On Section 16(2)(c) of the Central Goods and Services Tax (CGST) Act, which requires the tax charged on a supply to have been paid to the government for ITC to be claimed, Krishnamurthy said the matter had been referred to a committee of officers.
“It has been discussed in the Council… it has been referred to an officers’ committee with the direction that the conclusion would be arrived at within three months,” he said. The Council would meet after that to take a decision on the provision.
He said the government wanted to ensure that genuine taxpayers who had complied with the law were not denied credit, while preventing businesses involved in fraudulent transactions from claiming it.
He added that the Centre was training Central and state tax officers to ensure that the policy intent behind the GST process reforms translated into implementation on the ground.
Krishnamurthy cited growth of about 26% in overall taxable supplies and business-to-consumer taxable supplies between October and August, compared with the corresponding period a year earlier. GST revenue growth during the second quarter was around 15%, he added.
E-way bill checks to be reviewed
On e-way bills, he said an officers’ working group involving states had reviewed the mechanism. He said e-way bill data also supported economic forecasting and nowcasting by the RBI and statistical authorities.
The proposed changes seek to address concerns over goods vehicles being stopped without sufficient grounds. Under the recommendations, interception would require specific intelligence and authorisation by an officer of at least the rank of Joint Commissioner. The proposals also seek to restrict interception in transit states.
Read more at: https://www.deccanherald.com/business/gst-council-to-revisit-input-tax-credit-on-motor-vehicles-4180230
