The National Thermal Power Corporation (NTPC) has returned Rs 350 crore input tax credit (ITC) it received on the coal purchases invoice following a notice from the director general of GST Intelligence (DGGI).
DGGI sources said the nonreversal of ITC for three months in Telangana, Andhra Pradesh and Tamil Nadu had occurred due to an error. As per the tax rules, electricity is exempted and ITC has to be reversed. However, the NTPC had failed to reverse the ITC for three months. NTPC Ramagundam and NTPC Simhadri buy coal from the Singareni Collieries Company Limited and Mahanadi Coalfields Limited.
NTPC north units have rectified the glitch automatically. But, the south units were jolted into action only after the DGGI served a notice. The NTPC, otherwise, reverses the ITC regularly.
C Elbert, DGM (corporate communication), NTPC, said: “All the GST returns are filed well within the timelines. Since January 2021 when the auto-populate system computed ITC has started, GST on the purchases made by the NTPC got accumulated.”
However, the same was not used for making GST payments, except the eligible ITC towards business support services. “The NTPC reversed the accumulated ITC and the same was communicated to the GST authorities,” Elbert said.
Source: timesofindia.com
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