High Court Orders Reopening of GST Portal for Transitional Credit Filing, Enabling Taxpayers to Claim Pending Credits Under Rule

HC allowed writ petition seeking reopening of GST portal for TRAN-1 credit filing. Following SC order dated 22.07.2022, two months granted for filing transitional credit forms. Authorities directed to facilitate smooth credit claim process without technical barriers, providing relief to affected taxpayers under GST Act.

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Issues:
- Petition seeking relief under Article 226 of the Constitution of India for reopening the portal to file TRAN-1 and claim Credit Carry Forward.
- Inaction of Respondents declared arbitrary and contrary to GST Act, Constitution of India, and principles of natural justice.
- Consideration of petitioner's request in light of Supreme Court order dated 22.07.2022.

Analysis:
1. The petitioner filed a Writ Petition under Article 226 seeking the reopening of the portal to file TRAN-1 and claim Credit Carry Forward as per Section 140(3) of the CGST Act, 2017. The petitioner alleged the inaction of the Respondents to be arbitrary, contrary to the provisions of the GST Act, and in violation of constitutional provisions and natural justice principles. The relief sought was either the immediate reopening of the portal or manual claim of Credit Carry Forward in the interest of justice and equity.

2. The key issue for consideration in this case was whether the petitioner's request could be entertained. The Hon'ble Supreme Court, in an order dated 22.07.2022, allowed the filing of Special Leave Petitions and directed the Goods and Service Tax Network (GSTN) to open the common portal for filing forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a specific period. The order emphasized the need to avoid technical glitches during this period and granted 90 days for verification of claims by concerned officers, followed by reflection in the Electronic Credit Ledger.

3. The High Court, following the Supreme Court's order, allowed the Writ Petition to the extent of granting two months for filing the relevant forms for Transitional Credit. The order clarified that any aggrieved assessee could file the necessary forms during this period, irrespective of previous denials due to technical issues. The judgment did not limit the applicability to a specific assessment year, providing flexibility for all affected parties to benefit from the directive.

4. In conclusion, the Writ Petition was allowed in accordance with the Supreme Court's order, granting relief to the petitioner for filing Transitional Credit forms within the specified timeframe. The authorities were directed to ensure a smooth process without technical hindrances. The judgment highlighted the importance of facilitating the claims process for affected parties and emphasized compliance with the directives issued by the GST Council if necessary.

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