Court grants relief for delayed input tax credit filing under CGST Act, 2017

The court allowed the petition challenging the validity of Rule 117(1A) of the CGST Act, 2017. The petitioner was permitted to electronically upload form TRAN-I or avail input tax credit (ITC) in the monthly return GSTR-3B by a specified date. Failure to comply would allow the petitioner to claim ITC in the subsequent return. The court emphasized the importance of not denying credit to dealers facing technical difficulties, citing constitutional provisions.

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Issues:
Challenging vires of Rule 117(1A) of Central Goods and Service Tax Act, 2017 and seeking direction to permit electronic upload of form TRAN-I or avail input tax credit (ITC) in monthly return GSTR-3B.

Analysis:

Issue 1: Challenging vires of Rule 117(1A) of CGST Act, 2017
The petitioner, a partnership firm, contested the validity of Rule 117(1A) of the Central Goods and Service Tax Act, 2017. The petitioner sought permission to electronically upload form TRAN-I or avail input tax credit (ITC) in the monthly return GSTR-3B. The respondent had extended the date for filing TRAN-I till 31.03.2020 due to technical difficulties. The court noted that the issue was covered by previous judgments of the High Court and Delhi High Court, allowing similar petitions to file TRAN-I by a specified date. The court emphasized that denying unutilized credit to dealers unable to provide evidence of attempting to upload TRAN-I would violate Article 14 and Article 300A of the Constitution of India.

Issue 2: Direction to permit Petitioner to upload TRAN-I
The court, after considering the judgments of the High Court and Delhi High Court, allowed the present petition. The respondents were directed to permit the petitioner to upload TRAN-I on or before 30.06.2020. In case the respondent failed to comply, the petitioner was granted liberty to avail ITC in the GSTR-3B of July 2020. The court also highlighted that the respondents could verify the genuineness of the claims made by the petitioner.

This detailed analysis of the judgment showcases the court's interpretation of the legal provisions, previous judgments, and the rights of the petitioner in challenging the rule and seeking relief for carrying forward CENVAT credit.

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