Attention taxpayers! Finance Ministry makes important announcement for GST collections

In a relief for taxpayers, the Finance Ministry on Saturday (March 20) said it has not issued any instructions to officials to ask taxpayers to pay maximum GST liability in cash.

Recently, there were reports that some GST officers are using unauthorised communication means such as phone calls, WhatsApp and messages asking taxpayers to discharge ‘maximum tax liability’ in ‘cash’. 

According to the reports, this was being done in order to ensure that targets for revenue collection from GST for the financial year are met.

It is to clarify that neither the Government nor the Central Board of Indirect Taxes and Customs (CBIC) have issued any such instructions to their field formations, a Finance Ministry statement said.

The Finance also said GST taxpayers can utilise the Input Tax Credit available in their credit ledger to discharge their GST dues for the month of March.

“Taxpayers are free to utilise the Input Tax Credit available in their credit ledger, as permissible in law, to discharge their GST dues for the month of March, 2021 - the last month of this financial year,” the Central Board of Indirect Taxes and Customs (CBIC) said in a statement.

The collections for Goods and Services Tax (GST) crossed the Rs 1 lakh crore mark in February, for the fifth month in a row. The total collections in February is Rs 1.13 lakh crore.

(With inputs from IANS)