Ludhiana: In the suspension of GST assessment, the indirect tax center and customs (CBIC) have explained that input tax loans (ITC) from taxpayers can be blocked only after officers determine concrete reasons.
CBIC has published guidelines in this case where it has been clarified that from now on, the officers will not block ITC without recording “reasons to believe” in writing.
In this guideline, which was issued on November 2 by the Wing GST CBIC policy, has also been ordered that an officer blocked the ITC under the legal procedure, the taxpayer would be told about the action of GSTN’s portal along with details of officers who had blocked it.
In addition, the monetary boundary of ITC blocking has also been set according to the appointment of officials.
Some tax bar associations and tax professionals from Ludhiana and elsewhere have taken the problem of several officials who do not follow the right procedure when blocking itc.nk Thamman, a tax professional, said, “On November 2, CBIC issued a guide to stop the mechanical blocking itc .
According to this, before blocking the ITC, the officer must form an opinion only after considering all the facts of the case, the amount of the ITC is involved and whether it is necessary to block to protect the interest income.
the clerk will record a ‘reason to believe’ in the file before proceeding.
Furthermore, According to this guideline, the monetary boundary of ITC has also been repaired.
A representative or assistant commissioner can block ITC to RS 1 Crore, an additional commission or shared above RS 1 Crore but does not exceed Rs 5 Crore and President Commissioner or Commissioner above RS 5 Crore “The word taxpayer will be notified of the actions along with Detai l The officer who has blocked ITC.
Taxpayers can approach officers relating to them.
After the officer was satisfied, he could clean the tax credit.
The department must conclude the trial in a year of blocking ITC.
These are all received steps, because this will put certain restrictions on the actions and department officers will not be able to mechanically block itc.
Previously, taxpayers faced many problems and in certain cases blocking not lifted even after a year.
“Narinder Bhamra, President of the Indian producer association, said,” We thank CBIC for guidelines.
Until now, the procedure according to the law is not followed by several officials, producing large amounts of ITC signals.
But now, the original taxpayer will definitely get a big relief because their refund will not be detained with mere tax professional suspicions and departments also because now there will be more transparency and accountability.
Taxpayers will be able to find out why refunds they have been blocked and which officials do it.
“The reason for blocking ITC on material proof 3.1.4 CBIC guidelines about this said,” This is repeated that the power prohibits debit.
The number of ledger electronic books should not be done in mechanical and careful examination of all the facts of this case it is important to determine suitable cases to exercise with rules 6A.
Recovery to prohibit the debit amount from the ledger of electronic credit, with its nature, extraordinary, must be carried out with maximum surrender and with the maximum care and carefully.
It reflects on objective determination based on intelligent care and evaluation that is distinguished from pure subjective considerations.
The reason is based on available material evidence or collected in relation to the availability of fraud input tax credit or input tax credit that does not meet the conditions available according to the conditions / reasons under the sub-rule (L) rule 86a.
“