Nov 05, 2018
Pending VAT comes to haunt companies claiming input tax credit
State tax authorities have begun blocking input tax credit claims of companies that have any value-added tax (VAT) demand in the erstwhile tax regime pending against them. This has led to some worry in the industry which had hoped that input tax credit settlements in the goods and services tax (GST) regime would be seamless.
Large multinational companies in some states such as Punjab, Maharashtra, Delhi and Uttar Pradesh are facing this issue.