Big companies to appeal court on transitional credit losses

New Delhi: Several big companies will knock the doors of the High court over the losses incurred due to transitional credit against their goods and services tax liability, as per Zee Media sources.

These companies have reportedly not got  transitional credit called TRAN-1 on goods they bought before GST implementation.

The companies mulling action against transitional credit tax are retail, pharma and auto companies, sources said.

TRAN-1 is to be filed by those businesses that are keen to claim credit for taxes paid before the launch of GST on 1 July.

The companies are claiming that if government does not extend the 180 day deadline on tax credit, they will be forced to either sell the goods at discounts to clear off stocks.

The last date for filing of Form TRAN-1 was December 27. However, after the expiry of the deadline, these companies are demanding that the last date be further extended by six months.

Official data has showed that falling for the second consecutive month, the total revenue collected under GST touched Rs 80,808 crore in November -- down from Rs 83,346 crore in October, possibly also due to the large scale rate cuts made last month.