New GST rules on anvil: Businesses may have to explain discrepancy in ITC claims

New Delhi: The GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer, sources said.

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They said the Law Committee, comprising tax officers from Centre and states, has opined that where the ITC availed in GSTR-3B return exceeds the amount of ITC available in accordance with the auto-generated statement GSTR-2B by a specified threshold, the registered person may be intimated on the portal about such difference and be directed to either explain the difference or pay the excess ITC along with interest.

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The Committee has suggested that the provision should kick in if the difference is more than 20 per cent and more than Rs 25 lakh. (PTI)

• #New GST rules
• #businesses
• #ITC claims
• #Law Committee
• #GSTR 3B