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Home Chandigarh

Cheema writes to Sitharaman, seeks her personal intervention in taking into account reversal of Input Tax Credit for IGST settlement

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August 24, 2022
in Chandigarh, Punjab
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IEP CHANDIGARH AUGUST 24, 2022

Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Tuesday sought personal intervention of Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman in taking into account the reversal of Input Tax Credit by the taxpayers registered within the state for the IGST settlement.

In a letter to Union Finance Minister, Harpal Singh Cheema said that It has been observed that although the taxpayers registered within the State have carried out reversal of huge amount of Input Tax Credit but the same has not been considered for the IGST settlement.

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“Particular instance has been identified of M/s HPCL Mittal Energy Limited (GSTIN 03AABCG5231FIZ8) which has reversed ITC to the tune of Rs. 223 crores in financial year 2018-19, Rs. 230 Crores in FY 2019-20 and Rs. 227 crores in financial year 2020-21 respectively”, said Cheema.

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He further added that the said amount has not been taken into account while undertaking the process of IGST settlement for the said period thereby depriving the State of its rightful share of rrevenue “I have been informed that this issue has been consistently and constantly raised by my officers with the Government of India but no solution has emerged till now” said Cheema.

Referring to the grave importance of the issue for the revenue of the state, Cheema urged the Union Minister that her personal intervention is of much importance for the resolution of this matter as early as possible. He said that the significance of this issue resonates more strongly in light of the expiry of the GST compensation regime.

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