Errant taxpayers may face audit

Published On: 13, Dec 2017 | Source: financialexpress.com

The government on Wednesday warned that the taxpayers under GST would face audit and enforcement action against them if transitional credit claimed in TRAN-1 turn out to be incorrect with malafide intention. The taxpayers can revise their credit claims till December 27 in the same form, the government said. Transitional credit is a form of ITC, which is available to assessees in lieu of pre-GST taxes paid on the stock that was carried over for transaction in the GST regime. “Transition to GST provided for trust-based transition of input tax credit of the existing taxpayers. A taxpayer could file Form TRAN-1 and avail input tax credit on the basis of closing balance of the input tax credit declared in the last return under the pre-GST regime,” the government said.