Hyderabad: National Thermal Power Corporation (NTPC) has returned RS 350 Crore Credit Tax Input (ITC) received on the coal purchase invoice after notification from the Director General of GST Intelligence (DGGI).
The DGGI source said nonreversal ITC for three months in Telangana, Andhra Pradesh and Tamil Nadu had occurred because of errors.
According to the tax rules, electricity is excluded and ITC must be reversed.
However, NTPC failed to reverse ITC for three months.
NTPC Ramagundam and NTPC Simhadri buy coal from Collieries Company Singareni Limited and Mahanadi Coalfields Limited.
The NTPC North unit has fixed errors automatically.
But, the southern unit flinched to the action only after the DGGI presents a notification.
NTPC, if not, reverse ITC regularly.
C elbert, DGM (Corporate Communication), NTPC, said: “All GST returns are proposed well on the schedule.
Since January 2021 when the system is fulfilled automatically calculating ITC has begun, GST on the purchase carried out by NTPC accumulates.” However, the thing Same not used to make GST payments, except ITC which qualifies for business support services.
“NTPC reverses the accumulation of ITC and the same is communicated to the GST authorities,” Elbert said.