They said in some cases it is 100 crores, which appeared “non-genuine”. Therefore it has been decided that the GST Transitional Credit claims of over Rs 1 crore will be scrutinised, they said.
In a letter to chief commissioners across the country, the CBEC on September 11 asked them to verify such claims.
“The possibility of claiming ineligible credit due to mistake or confusion cannot be ruled out. It is desired that the claims of ITC (input tax credit) of more than Rs 1 crore may be verified in a time-bound manner,” the CBEC said in the letter, which was written by CBEC member Mahender Singh.
Under the GST rules, traders are allowed to claim a credit of 60% of excise levies paid earlier against the CGST or SGST dues where the tax rate exceeds 18%. A 100% duty will be credited for white goods costing above Rs 25,000, and bearing the brand name of the manufacturer.
