GST transitional credit relief through nodal officer mechanism where portal glitch prevented timely TRAN-1 filing

Where a taxpayer could not upload FORM GST TRAN-1 within time because of a demonstrable technical glitch on the GST portal, the Kerala HC treated the grievance redressal mechanism as the proper route. The Court relied on the Government circular providing for nodal officer intervention in cases of portal failure and permitted the taxpayer to apply through that mechanism. The nodal officer was to examine the difficulty and facilitate uploading of FORM GST TRAN-1 without reference to the time limit. If manual application was made within the stipulated period and uploading still remained impossible for reasons not attributable to the taxpayer, the authority was to enable availment of the transitional input tax credit.

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Issues: Whether the petitioner, having failed to upload FORM GST TRAN-1 within time because of a technical glitch on the GST portal, was entitled to have the matter routed through the nodal officer and to be enabled to avail transitional input tax credit.

Analysis: The Court noted the Government circular providing an IT grievance redressal mechanism for taxpayers affected by technical glitches on the common portal and contemplated applications to nodal officers where a demonstrable portal failure prevented compliance. As similar grievances had earlier been entertained by directing recourse to the nodal officer, the petitioner was permitted to apply to the nodal officer, who was to examine the difficulty and facilitate uploading of FORM GST TRAN-1 without reference to the time limit. The Court further directed that if manual application was made within the stipulated period and uploading remained impossible for reasons not attributable to the petitioner, the authority should enable availment of the available input tax credit.

Conclusion: The petitioner was entitled to relief through the nodal officer mechanism, and the authorities were directed to facilitate filing of FORM GST TRAN-1 and consequential transitional credit if the failure was not attributable to the petitioner.

Ratio Decidendi: Where a taxpayer is prevented from completing GST transitional filing because of a demonstrable technical glitch on the common portal, the grievance redressal mechanism through the nodal officer must be used to facilitate compliance and protect the taxpayer's transitional credit.

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