2024 (12) TMI 1501 - HC - GST

Electrical supplier gets relief to claim input tax credit despite missing deadline due to technical glitches

Kerala HC ruled in favor of petitioner, an electrical goods supplier who transitioned from Composition Scheme to Regular Scheme under CGST/SGST Acts in ... Petitioner seeks further opportunity to upload Ext.P2 FORM and claim ITC in respect of the closing stock as on 09.04.2024 - switching over from the Composition Scheme under Section 10 of the CGST/SGST Acts to Regular Scheme of tax payment under Section 9 of the CGST/SGST Acts - principles of natural justice - HELD THAT:- The petitioner is to be given one more opportunity to upload Ext.P2 FORM and claim ITC in respect of the closing stock, as on 09.04.2024. It is clear from Ext.P3 that, after several attempts to upload Ext.P2 FORM, the petitioner raised a complaint with the GST Help Desk. It is also not disputed that, 08.05.2024 was the last day for the petitioner to upload Ext.P2 FORM and Ext.P3 shows that a complaint had been raised by the petitioner on 08.05.2024. That complaint of the petitioner has now been closed by Ext.P6 communication. Though it is the case of the learned Standing Counsel appearing for the GST Network that the complaint raised was closed because the petitioner did not respond, the fact remains that even on the last day for uploading Ext.P2 FORM, the petitioner did not get a response regarding the technical glitches that he faced in uploading Ext.P2 FORM. Conclusion - The petitioner should be given another opportunity to upload the form, keeping in view the petitioner's efforts and the unresolved technical issues. The writ petition will stand disposed of, directing that the petitioner shall be given one more opportunity to upload Ext.P2 FORM, if necessary, by enabling the Portal. In the case before the Kerala High Court, the petitioner, a registered entity under the CGST/SGST Acts engaged in the supply of electrical goods, transitioned from the Composition Scheme under Section 10 to the Regular Scheme under Section 9 of the CGST/SGST Acts in April 2024. The petitioner sought to upload FORM GST ITC-01 to claim input tax credit (ITC) for the opening stock as of April 9, 2024, as per Section 18(1)(c) of the CGST/SGST Acts and Rule 40(1)(b) of the GST Rules, 2017. Due to technical glitches on the GST Portal, the petitioner was unable to upload the form by the deadline of May 8, 2024, despite raising a complaint with the GST Help Desk.The court, presided over by Justice Gopinath P., acknowledged the petitioner's efforts and the unresolved technical issues, ruling that the petitioner should be given another opportunity to upload the form. The judgment directed the 5th respondent to ensure the portal is enabled for this purpose. If the form is successfully uploaded within one week of the portal being enabled, the petitioner's claim for ITC shall not be denied due to the missed initial deadline. The writ petition was disposed of accordingly, granting the petitioner relief to claim ITC.