Petitioner granted GST registration backdated to July 2017 after portal mapping failure prevented input tax credit utilization

Gujarat HC disposed of petition seeking GSTIN activation and final registration certificate from 01.07.2017. Court held petitioner was not at fault for inability to utilize provisional GST number during business transition from partnership to proprietorship. GSTN Portal failed to properly map petitioner's PAN with GST number, preventing input tax credit utilization from July 2017 to March 2018. Court directed department to make petitioner's 2018 GST number effective from 01.07.2017, enabling recovery of input tax credit for goods purchased during the interim period.

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Issues Involved:
1. Activation of GSTIN and granting final certificate of registration.
2. Filing returns, availing input tax credit, and paying applicable tax for the specified period.
3. Restraining the respondents from imposing late fees or penalties due to non-completion of the migration process.

Judgment Summary:

Issue 1: Activation of GSTIN and Granting Final Certificate of Registration

By way of this petition filed u/s Article 226 of the Constitution of India, the petitioner has prayed for reliefs including the activation of GSTIN 24AADHC3412R1ZC from 01.07.2017 and granting final certificate of registration. The petitioner, engaged in the supply of ZENON system/machinery, faced issues due to a technical error where the provisional GSTIN was linked with the PAN of a partnership firm instead of the petitioner's PAN. The provisional GSTIN was suo-moto cancelled due to a mismatch, and subsequent GSTINs were also cancelled or inactive. The petitioner obtained a new GSTIN on 05.04.2018 and filed returns under this number but could not file returns for the period from July 2017 to March 2018 due to portal restrictions.

Issue 2: Filing Returns, Availing Input Tax Credit, and Paying Applicable Tax

The petitioner requested the reactivation of the second provisional GSTIN to file returns for the period from July 2017 to March 2018 and avail input tax credit. Despite multiple communications and visits to various authorities, the issue remained unresolved. The petitioner cited government notifications allowing the completion of the migration process and submitted the required documents but received no resolution. The respondents argued that the petitioner should have waited for the technical glitch to be resolved instead of obtaining a new GSTIN and that the petitioner is not entitled to carry forward or avail the benefit of input tax credit for the interregnum period.

Issue 3: Restraining the Respondents from Imposing Late Fees or Penalties

The petitioner sought to restrain the respondents from imposing late fees or penalties for non-filing/late filing of returns due to the non-completion of the migration process. The court noted that the petitioner faced issues due to the GSTN Portal's failure to map the correct PAN, which was not the petitioner's fault. The court directed the respondent authorities to activate the GST Number 24AADHC3412R2ZB with effect from 01.07.2017 within two weeks, enabling the petitioner to get the input tax credit for the goods purchased during the interregnum period from 01.07.2017 to March 2018.

Conclusion:

In conclusion, the court directed the respondent authorities to activate the GST Number 24AADHC3412R2ZB with effect from 01.07.2017 within two weeks. The petition was disposed of with this direction, and the notice stood discharged.

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