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Businesses will be able to claim pre-GST tax credits from October 1

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The businesses that could not claim tax credits for taxes paid during the pre-goods and services tax (GST) era may soon get an opportunity to do so. The government, from October 1, is likely open a special window for businesses to file their claims.

According to a report, the credits are expected to be worth Rs 400 crore. "Based on the information that we have, the amount that is estimated is around Rs 400 crore. We are waiting for the window to open so that people can start filing claims," a person aware of the matter reported.

When the new tax regime under GST was introduced in 2017, several businesses could not file their tax claims due to a lack of clarity on the rules. The businesses also reportedly faced technical glitches. These have now been resolved. The window for claiming the credits open on October 1 and close on December 1. The Supreme Court (SC) had earlier asked the government to open the window on September 1 but it granted an extra four weeks to prepare the IT systems to avoid technical glitches. It had also directed the government to keep in mind the high court judgements around transitional GST credit. Experts have said that the GSTN will accept the claims of tax credits, and the eligibility of the credit will be checked in the courts.

The taxpayers can either file fresh claims or revise their earlier forms on the GST portal. Also, they will be required to submit self-certified copies of the forms within seven days of filing the claim online.

On September 9, the Central Board of Indirect Taxes and Customs (CBIC) issued guidelines to clarify the procedure and timeline of the credit claims, to the officials.


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TaxGyata Team

TaxGyata Team