GST Portal Technical Glitch: Taxpayers Get Relief with Nodal Officer Intervention and Guaranteed Input Tax Credit Resolution

HC addressed a GST technical glitch preventing timely upload of FORM GST TRAN-1. The court directed the petitioner to apply to the Nodal Officer within two weeks, mandating resolution within a week. If upload remains impossible due to system constraints, the authority must enable input tax credit. The ruling provides a structured mechanism for taxpayers facing GST portal compliance challenges.

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Issues involved:
The petitioner's failure to upload FORM GST TRAN-1 due to a system error, seeking directions to take credit of available input tax under the Goods and Services Tax regime.

Analysis:
The petitioner, a registered dealer under the Kerala Value Added Tax Act, faced a technical glitch preventing the upload of FORM GST TRAN-1 within the stipulated time during the migration to the Goods and Services Tax regime. The petitioner sought directions to enable the credit of available input tax. The High Court considered the circular issued by the Government of India establishing an IT Grievance Redressal Mechanism for taxpayers facing technical glitches on the GST Portal. The circular outlined the procedure for addressing such issues through nodal officers appointed by GSTN, Central, and State governments. Taxpayers were required to make applications to the nodal officers with evidence of glitches hindering compliance with due process. The applications would be forwarded to GSTN for examination and resolution by the IT Grievance Redressal Committee.

The Court noted that not only the petitioner but also others faced similar technical glitches and had approached the Court previously. In previous instances, the Court permitted petitioners to apply to the additional sixth respondent for issue resolution. Therefore, in this case, the petitioner was directed to apply to the additional sixth respondent, the Nodal Officer, who would address the issue and facilitate the uploading of FORM GST TRAN-1 without considering the time-frame. The Court ordered the petitioner to apply within two weeks of the judgment, with the Nodal Officer required to consider and take steps within a week thereafter. If the uploading of FORM GST TRAN-1 was not possible due to reasons beyond the petitioner's control, the authority would enable the petitioner to take credit of the input tax available at the time of migration.

In conclusion, the High Court disposed of the Writ Petition by providing directions for the petitioner to resolve the issue of uploading FORM GST TRAN-1 and enabling the credit of available input tax under the Goods and Services Tax regime, emphasizing the importance of timely application and resolution by the Nodal Officer.

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