Punjab FM asked centre to remove blockage of ITC
Punjab finance minister Manpreet Singh Badal has asked the central government to remove a block on GST input tax credits. The reason being it was leading to working capital issues . Revenue secretary Ajay Bhushan Pandey said that there is a blocking of ₹40,000 crore GST credits due to a mismatch in filings and returns.
Pandey also said “I’m informed that the central tax authorities have also taken this action in respect of taxpayers whose administration is otherwise with the state authorities, disturbing the agreed protocol for this purpose.
Noting that tax credits had been blocked for all taxpayers where there were some differences between GSTR-2A and GSTR-3B, these differences were largely inevitable in a large number of bona fide situations like reverse charge mechanism supplies or credits through the input service distributor route”.