2018 (5) TMI 275 - HC - GST

Navigating Input Credit Claims & IT Glitches in GST: Procedures & Relief Mechanisms

The judgment addresses the procedure for claiming input credits in cases of technical obstacles faced by assessees, with the GST Council devising a ... Input tax credit - IT Grievance Redressal Mechanism - deemed filing - time bar/limitation deemed satisfied - nominated nodal officers for redressalIT Grievance Redressal Mechanism - nominated nodal officers for redressal - Recognition of a proposed IT grievance redressal mechanism and appointment of nodal officers to address taxpayers' portal-related problems. - HELD THAT: - The Court recorded the GST Council's statement that an IT Grievance Redressal Mechanism has been devised in principle to address problems faced by taxpayers due to GSTN glitches, that the GST Implementation Committee will function as the IT Grievance Redressal Committee, and that a circular prescribing the procedure will be placed before the Committee and thereafter published. The Council also stated that nodal officers will be appointed in requisite numbers to ascertain facts and verify cases in a time bound manner so that individual grievances can be decided appropriately.The Court noted and accepted the GST Council's in principle mechanism and the proposal to nominate nodal officers for grievance redressal.Input tax credit - deemed filing - time bar/limitation deemed satisfied - Provision of a one time facility to allow deemed filing of specified forms so that eligible assessees can claim input tax credit despite portal-related technical failures. - HELD THAT: - The GST Council informed the Court that a one time facility will be made available to allow filing or amendment of prescribed Forms/Returns, and that such filing would be treated as having been made within the statutory time limit (i.e., the condition of filing within the limitation will be deemed satisfied). This facility is intended to permit assessees who were unable to file TRAN I / TRAN 2 due to technical errors to claim input credit by completing filing under the redressal procedure.The Court recorded the Council's assurance that a one time deemed filing facility will be provided to facilitate claiming of input tax credit where technical glitches prevented timely filing.Deemed filing - time bar/limitation deemed satisfied - nominated nodal officers for redressal - Qualification of the one time deemed filing facility to those who had approached authorities before the expiry of the stipulated time and the avenue for assessees to show omission. - HELD THAT: - The Council stated that the one time deemed filing remedy would be available only to taxpayers/concerns who had communicated their portal problems to the GST Council or the concerned commissionerate/portal/officials (for example, by e mail or other means) before the stipulated filing deadline. The Council further acknowledged that if any eligible assessee was inadvertently left out, it would be open for such persons to demonstrate that omission to the nominated nodal officers, who are to be empowered to consider and remedy such cases.The Court recorded the limitation placed on the facility and the availability of a remedy for those who can show they were left out, to be processed by the nominated nodal officers.Final Conclusion: The Court recorded the GST Council's in principle approval of an IT grievance redressal procedure, the availability of a one time deemed filing facility to permit claim of input tax credit where portal glitches prevented timely filing (subject to prior communication before the deadline), and the proposal to nominate nodal officers to address omissions; matter listed for further consideration on 9 April 2018. Issues:1. Claiming input credits in cases of technical obstacles/glitches.2. Devise of IT Grievance Redressal Mechanism by GST Council.3. Accommodation for assessees unable to file TRAN-I/TRAN-2 forms due to technical errors.4. Procedure for addressing concerns of taxpayers in a time-bound manner.5. One-time facility for deemed credit filing.Analysis:1. The judgment addresses the issue of claiming input credits in cases where technical obstacles or glitches are faced by assessees. The GST Council has devised a procedure to ensure that such input credits can be claimed. It is stated that assessees who could not file TRAN-I/TRAN-2 forms in time due to technical errors will be accommodated.2. The GST Council has proposed an IT Grievance Redressal Mechanism to address problems faced by taxpayers due to IT glitches on the common portal. The mechanism has received in-principle approval and will be implemented by the GST Implementation Committee. Nodal officers will be appointed to address taxpayer concerns in a time-bound manner.3. Assessees who faced technical errors leading to the inability to file required forms within stipulated timeframes will be provided with a one-time facility for filing. This will result in a deemed credit as if the form was filed before the expiry of the stipulated time. The facility is available to those who approached the GST Council or relevant authorities before the deadline.4. The relief provided to taxpayers under the proposed redressal mechanism may include allowing the filing of any required form or return, or amending any form or return already filed. The procedure for filing the form will be deemed completed within the prescribed time limitation. Nodal officers will be responsible for verifying facts in each case before decisions are made.5. The judgment emphasizes that the one-time facility for deemed credit filing will only be available to those who contacted the GST Council or relevant authorities before the stipulated deadline. Assessees are encouraged to communicate any omissions to the concerned Nodal Officers for necessary action. The case is listed for further proceedings on 9th April 2018.