GST portal glitch relief permits TRAN-1 upload through grievance redressal and preserves transitional input tax credit

A taxpayer who made a bona fide attempt to upload FORM GST TRAN-1 but was prevented by a demonstrable GST portal glitch could seek relief through the grievance redressal mechanism. The Kerala HC referred to the circular providing for examination of technical failures by the nodal officer and directed the petitioner to approach that officer for verification of the portal problem. If the failure was not attributable to the taxpayer, facilitation of uploading TRAN-1 and consequential transitional input tax credit were to be enabled notwithstanding the prescribed deadline.

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Issues: Whether the petitioner was entitled to be permitted to upload FORM GST TRAN-1 and claim transitional input tax credit despite the alleged technical glitch on the GST portal.

Analysis: The petitioner claimed that the attempt to upload FORM GST TRAN-1 within time failed because of a system error. The Court referred to Circular No. 39/13/2018-GST dated 03.04.2018, which provides a grievance redressal mechanism for taxpayers affected by technical glitches and contemplates examination of demonstrable portal failures by the nodal officer. In view of the acknowledged difficulty faced by the petitioner and the approach earlier adopted in similar matters, the petitioner was directed to approach the nodal officer, who was to examine the grievance and facilitate uploading of FORM GST TRAN-1 without reference to the prescribed time limit.

Conclusion: The petitioner was held entitled to seek facilitation for uploading FORM GST TRAN-1 through the nodal officer, and consequential credit was directed to be enabled if uploading remained for reasons not attributable to the petitioner.

Final Conclusion: The writ petition was allowed by issuing directions to the nodal officer to process the petitioner's grievance and ensure transitional credit relief if the portal issue persisted.

Ratio Decidendi: Where a taxpayer shows a bona fide attempt to comply but is prevented from filing TRAN-1 by a demonstrable GST portal glitch, the court may direct recourse to the nodal grievance mechanism and permit transitional credit relief notwithstanding the expiry of the portal deadline.

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