GST authorities issue notices over input tax credit discrepancies
GST authorities have issued notices to companies for discrepancies in input tax credit claims, prompting scrutiny of annual returns against monthly filings. Notices under Section 150 of the CGST Act demand explanations for "short reporting" of ITC. However, businesses argue that some notices lack verification, imposing undue compliance burdens. Despite this, officials maintain that mismatches cannot be overlooked.
Goods and services tax (GST) authorities have issued notices to several companies for discrepancy in claim of input tax credit, or ITC, people aware of the matter said. This follows close scrutiny of input tax availed by the companies and mismatch with their annual return.
The notices have been sent under Section 150 of the CGST Act, 2017. The department has asked the taxpayers to file an information return, giving details of the reason for the "short reporting" of input tax credit.
