GST Dispute: Technical Portal Issues Halt Input Tax Credit Claim, Court Allows Firm to Upload ITC-01 FORM Under Section 18(1)(c)

HC addressed a GST dispute involving a firm's conversion from Composition Scheme to normal scheme. Technical portal glitches prevented timely filing of ITC-01 FORM. Citing precedent from Gujarat HC, the court directed respondents to allow petitioner to upload ITC-01 FORM and claim Input Tax Credit of Rs. 31,18,718 under Section 18(1)(c). Respondents were ordered to complete the process within four weeks.

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Issues:
The issues involved in the judgment are the delay in filing ITC-01 FORM, entitlement to claim Input Tax Credit, and the relief sought by the petitioner.

Delay in Filing ITC-01 FORM:
The petitioner, a Proprietorship Firm registered under the Goods and Service Tax Act, converted from the Composition Scheme to the normal scheme due to increased turnover. The petitioner sought to avail Input Tax Credit (ITC) for stock of inputs in the form of semi-finished/finished goods and Capital goods held on the date of conversion. However, technical glitches on the GST Portal prevented the petitioner from filing the ITC-01 FORM within the stipulated time frame.

Entitlement to Claim Input Tax Credit:
The petitioner complied with the provisions of the SGST Rules and prepared a summary of eligible ITC on the stock. Despite approaching the authorities for grant of the benefit, no action was taken, possibly due to the delay attributed to the petitioner. The petitioner argued for entitlement to the ITC based on Section 18 (1) (c) of the SGST Act, 2017, citing similar relief granted by the Gujarat High Court in comparable cases.

Relief Sought by the Petitioner:
The petitioner filed a writ petition seeking a writ of Mandamus to command the respondent authorities to condone the delay and allow the filing of ITC-01 FORM to claim the eligible ITC. Additionally, the petitioner requested a directive for the respondent to decide on the representation within a fixed time frame. The respondent, while acknowledging the delay caused by the petitioner, did not dispute the relief granted by the Gujarat High Court in similar circumstances.

Judgment:
After hearing both parties and considering the case laws cited, the Court found the petitioner's situation akin to those before the Gujarat High Court and granted the relief sought. The Court directed the respondents to permit the petitioner to upload the Form ITC-01 to claim the Input Tax Credit amounting to Rs. 31,18,718 under Section 18 (1) (c) of the Act. The respondents were instructed to complete the process within four weeks from the date of service of the order.

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