New Online Facility for Input Tax Credit verification (Gujarat VAT)

January 9, 2014
1 min read

[By Shaleen Shah (Partner), VNCA]

You are aware that all dealers registered under Gujarat VAT Laws are required to file their returns online. Along with the main E-Return for VAT, each dealer (other than dealers who have opted for composition) is required to upload online the following details –

  • Annexure 201A specifying the complete list of `Tax Invoices’ issued by the Dealer on local sales made by it;
  • Annexure 201B specifying the complete list of `Tax Invoices’ received by the Dealer for local purchases made by it and on which Input Tax Credit (ITC) is claimed; and
  • Annexure 201C specifying the stock details.

You are also aware that for claiming ITC on local purchases, the purchasing dealer must have a valid `Tax Invoice’.

We had informed you that the Gujarat Budget for 2013-14 introduced new sub-section (7A) in section 11 to provide that if a vendor has not paid tax collected on sales into the Government Treasury, the buyer’s ITC will be disallowed to that extent.

Hence it is now imperative for the purchasing dealer to verify whether the ITC claimed is genuine.

Since quite some time, the Commercial Tax Department has been publishing a list of `Cancelled Dealers’ on its website

The Commercial Tax Department has recently launched a new facility / tool on its website aptly name `ITC Profile’, for online verification of ITC. The tool matches the details filed in Annexures 201A & 201B and indicates instances where mismatch occurs. The tool will also highlight if the selling dealer has not paid tax, or not filed its return or the registration of the selling dealer is cancelled.

So now, the purchasing dealer who has filed e-returns can verify the status of ITC claimed. A mismatch in ITC or default by selling dealer would result in rejection of ITC claim and hence shortfall in the payment of tax.

We advise you to make full use of this tool by checking the status of ITC claimed on regular basis to avoid surprises & demands at the time of assessment.

Please click the link below to download the presentation on how to use this tool.

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