Streamlining GST ITC Claims: CBIC Notifies Public Tech Platform for Frictionless Credit Integration

The Central Board of Indirect Taxes and Customs (CBIC) issued Notification 06/2024- Central Tax on February 22, 2024. This notification paves the way for smoother and faster processing of Input Tax Credit (ITC) claims for businesses registered under the Goods and Services Tax (GST) regime.

Key Points of the Notification:

• The notification designates the “Public Tech Platform for Frictionless Credit” as a system authorized to receive information shared by the common GST portal.
• This information sharing is based on the taxpayer’s consent, granted under Section 158A(2) of the Central Goods and Services Tax (CGST) Act, 2017.

Expected Benefits:

• The integration of the Public Tech Platform with the common GST portal is expected to streamline the process of claiming ITC.
• By enabling access to verified data from various sources, the platform can potentially facilitate faster verification and processing of ITC claims.
• This, in turn, could lead to quicker refunds and improved cash flow for businesses.

Madras High Court: Timely Tax Payment Trumps Late Return Filing, No Interest Due!

Background:

Section 158A of the CGST Act allows registered taxpayers to share specific information with other systems, subject to their consent. This notification by the CBIC identifies the Public Tech Platform as one such authorized system.

Developed by the Reserve Bank of India (RBI), the Public Tech Platform aims to create a large ecosystem for credit by facilitating the secure and efficient exchange of information between various stakeholders, including financial institutions, data providers, and borrowers.

Conclusion:

The integration of the Public Tech Platform with the common GST portal is a positive step towards simplifying and expediting the ITC claim process for businesses. This collaboration has the potential to improve cash flow and enhance the overall ease of doing business under the GST regime.

It is important to note that this is a recent development, and the specific procedures and timelines for availing benefits through the Public Tech Platform are yet to be clarified by the authorities. Businesses are advised to stay updated on further pronouncements from the CBIC and the GST Council in this regard.

(The author is Naveen Panwar, and the views expressed in this article are his own)