More input tax credit claims on pre-GST stocks to raise govt woes

The GST Council had allowed companies to claim 100 per cent input tax credit by uploading excise payment invoices for the period before July 1

Another set of claims of input tax credit on stocks from the period before the introduction of the goods and services tax (GST) is likely to aggravate the government’s problems.

While the government is rattled by the input tax credit (ITC) claimed for pre-GST stocks because it accounted for more than 68 per cent of the taxes paid in the new tax regime, more claims are expected from traders and retailers without invoices. 

For the close to Rs 95,000 crore revenue collected so far in July, around Rs 65,000 crore has been claimed as input tax credit by filing TRAN 1 for