2022 (7) TMI 1232 - SCH - GST

GSTN ordered to reopen portal for TRAN-1 TRAN-2 forms allowing transitional credit filing until October 31

The SC directed GSTN to reopen the common portal for filing TRAN-1 and TRAN-2 forms for transitional credit from 01.09.2022 to 31.10.2022. All aggrieved ... Transitional credit under TRAN-1 and TRAN-2 - opening of common portal by Goods and Services Tax Network (GSTN) - extension of filing/revision window for transitional credit claims - verification of transitional credit claims and opportunity of being heard - reflection of allowed transitional credit in Electronic Credit Ledger - directions to ensure absence of technical glitches - guidance by the GST Council to field formationsOpening of common portal by Goods and Services Tax Network (GSTN) - transitional credit under TRAN-1 and TRAN-2 - GSTN directed to open a common portal to enable filing of TRAN-1 and TRAN-2 for the specified period - HELD THAT: - The Court directed GSTN to open a common portal specifically for filing forms to avail transitional credit through TRAN-1 and TRAN-2 for the two-month window w.e.f. 01.09.2022 to 31.10.2022. The direction is issued as a measure to enable filing and revision of transitional credit claims within the prescribed window. The Court further mandated that GSTN ensure that there are no technical glitches during the said period so that eligible assessees can access and submit the requisite forms.GSTN to open and maintain a common portal for TRAN-1/TRAN-2 filings for 01.09.2022 to 31.10.2022 and ensure absence of technical glitchesExtension of filing/revision window for transitional credit claims - transitional credit under TRAN-1 and TRAN-2 - Aggrieved registered assessees permitted to file or revise TRAN-1/TRAN-2 forms irrespective of pending or decided writ petitions or ITGRC decisions - HELD THAT: - Considering the positions taken by various High Courts and the circumstances then prevailing, the Court allowed any aggrieved registered assessee to file the relevant form or revise an already filed form within the portal window, without regard to whether the taxpayer had instituted a writ petition before a High Court or whether the taxpayer's case had been decided by the Information Technology Grievance Redressal Committee. The direction is prospective and aims to afford equitable opportunity to all registered taxpayers to claim transitional credit.All aggrieved registered assessees may file or revise TRAN-1/TRAN-2 forms during the prescribed window irrespective of prior writs or ITGRC outcomesVerification of transitional credit claims and opportunity of being heard - transitional credit under TRAN-1 and TRAN-2 - Concerned officers given time to verify claims and decide on merits after granting reasonable opportunity to parties - HELD THAT: - The Court directed that, after the filing/revision window, concerned officers shall have 90 days to verify the veracity of the claims for transitional credit and to pass appropriate orders on merits. The verification process is to be conducted after granting an appropriate and reasonable opportunity of hearing to the parties concerned. This direction imposes a procedural timeline and emphasises adjudication on merits following customary principles of natural justice.Officers to verify claims and pass merit-based orders within 90 days after granting reasonable opportunity to partiesReflection of allowed transitional credit in Electronic Credit Ledger - Allowed transitional credit to be reflected in the Electronic Credit Ledger - HELD THAT: - The Court directed that once transitional credit is allowed pursuant to verification and orders passed by the concerned officers, the allowed amount shall be reflected in the Electronic Credit Ledger. This ensures operational effect of any positive adjudication on transitional credit claims.Allowed transitional credit must be posted to the Electronic Credit LedgerGuidance by the GST Council to field formations - GST Council may, if required, issue guidelines to field formations for scrutiny of claims - HELD THAT: - The Court observed that, if necessary, the GST Council may issue appropriate guidelines to assist field formations in scrutinising transitional credit claims. This leaves scope for standardized administrative guidance but does not supplant the requirement of verification and adjudication by concerned officers on merits.GST Council may issue guidelines to field formations in scrutinising transitional credit claimsFinal Conclusion: Permission to file Special Leave Petitions was granted and delay condoned; the Court issued directions permitting filing/revision of TRAN-1/TRAN-2 on a common GSTN portal for 01.09.2022 to 31.10.2022, mandated GSTN to prevent technical glitches, provided a 90-day timeline for verification and merit adjudication with opportunity of hearing, required allowed credits to be reflected in the Electronic Credit Ledger, and left open the option for the GST Council to issue guidance to field formations. The Special Leave Petitions are disposed of and pending applications stand disposed of. Issues:1. Transitional credit under Goods and Service Tax Network (GSTN) for registered assesses.2. Filing of relevant forms for availing Transitional Credit through TRAN-1 and TRAN-2.3. Technical glitches during the filing period.4. Verification process by concerned officers for transitional credit claims.5. Reflecting allowed Transitional credit in the Electronic Credit Ledger.6. Issuance of guidelines by GST Council for scrutinizing claims.Analysis:1. The Supreme Court directed the Goods and Service Tax Network (GSTN) to open a common portal for filing forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a specific period of two months starting from September 1, 2022, to October 31, 2022.2. In light of judgments by High Courts and prevailing circumstances, any aggrieved registered assessee was mandated to file or revise the relevant form, regardless of whether they had filed a writ petition before the High Court or if their case had been decided by the Information Technology Grievance Redressal Committee (ITGRC).3. GSTN was instructed to ensure the absence of technical glitches during the specified filing period to facilitate a smooth process for taxpayers.4. Concerned officers were granted a 90-day period post-filing to verify the veracity of transitional credit claims and make appropriate decisions after providing a reasonable opportunity to the parties involved.5. Allowed Transitional credit was to be accurately reflected in the Electronic Credit Ledger after the verification process was completed satisfactorily.6. The GST Council was authorized to issue necessary guidelines to field formations for scrutinizing and processing the claims effectively. The Special Leave Petitions were disposed of accordingly, and any pending applications were also resolved as part of the judgment.