Supreme Court in Union of India Vs. Filco Trade Centre [P] Ltd directs GST Network to Open Portal For Tran-1/Tran-2 Forms for 2 Months
The Hon’ble Supreme Court of India in Union of India & Anr Vs. Filco Trade Centre [P] Ltd & Anr (Petition(s) for Special Leave to Appeal (C) No(s)32709-32710/2018 –Order dated: 22.07.2022) has directed the Goods & Services Tax Network (GSTN) to allow a 2-month additional window from September 1, 2022 to October 31, 2022 for claiming Transitional Credit.
FACTS OF THE CASE
TRAN-1 and TRAN-2 Forms were introduced under the GST scheme to allow assessees/tax persons to carry forward pre-GST credits to the GST system. As per Rule 117 (Chapter XlV – Transitional provisions) of the CGST Rules,2017 such claims had to be filed within 90 days from 1st July, 2017 (when the GST Act came into force). Thereafter the last date for furnishing TRAN -1/2 Forms was extended by the Government many times, finally up to 31.03.2019. However due to technical glitches in the GST portal as well as due to the complexities prevailed in the initial stage of GST a large number of assesses could not file TRAN-1 application for availing ITC on opening stock, which was otherwise eligible for them. Addressing the issue, while disposing writ petitions different High Courts passed orders for extending the time line, against which the Union of India had approached the Supreme Court.
HELD BY THE COURT
√ Goods and Services Tax Network (GSTN) is directed to open common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. w.e. from 01.09.2022 to 31.10.2022.
√ Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC).
√ GSTN has to ensure that there are no technical glitch during the said time.
√ The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned.
√ Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.
√ If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.
Author/Blogger: Aji V. Dev, Advocate, High Court of Kerala at Aji V. Dev & Associates, Ernakulam, Kochi, available at firstname.lastname@example.orgemail@example.com/9447788404.