GST transitional credit claims Rs 12,000 cr

New Delhi sept 23: The central Government has verified the transitional credit claims of taxpayers in July the first month of GST and estimated that the claims are around 12,000 crores.

Earlier the Taxpayers have claimed a refund of RS 65,000 crore as transitional credit (exercise and service tax) for the month of July and RS 95,000 crore tax has been collected in July.

The Goods and Services Tax (GST) regime allows tax credit on stock purchased during the previous tax regime. This facility is available only up to 6 months from the date of GST rollout.

Officials have said that the figure of transition credit claimed is also not incredibly high since Rs 1.27 lakh crore of credit of central excise and service tax was lying as closing balance as on June 30, 2017.

The clarification and scrutiny come as a relief because earlier many people have criticized the government that less revenue was collected under the GST Tax regime because of higher outgo of refunds.