GSTN blocks Rs 14,000 crore input tax credits of 66,000 taxpayers
GSTN in a tweet said that the figure comprises of erroneous data entries made by the tax payers
On Tuesday, GST Network (GSTN) on twitter said that it has blocked Rs 14,000 crore worth of Input Tax Credit (ITC) of 66,000 businesses under GST’s registeration. The response comes on the back of social media posts based on an RTI reply about the Rs 6.14 lakh crore of ITC blocked under the Rule 86A of GST laws, GSTN in a tweet said that the figure comprises of erroneous data entries made by the tax payers.
Rule 86A introduced to block ITC
“ITC of approximately Rs 14,000 crore involving 66,000 taxpayers stands blocked as on date. This is only 0.38% (Approx.) of average ITC utilised by all taxpayers in a financial year,” tweeted GSTN, the company that handles the technology backbone for goods and services tax.
ITC of approximately Rs. 14,000 crores involving 66,000 taxpayers stands blocked as on date. This is only 0.38% (Approx.) of average ITC utilized by all taxpayers in a financial year. (2/2)
— GST Tech (@Infosys_GSTN) October 12, 2021
Back in December 2019, the government had introduced the Rule 86A in GST rules giving powers to taxmen to block the ITC available in the electronic credit ledger of a taxpayer, if the officer has reasons to believe, that the ITC was availed through fraudulent measures. At present, there are 1.32 crore taxpayers registered under GST.