Tran-1 GST

[VIGNESH]

Sir. I have C/fd in Tran-1 unclaimed taxes paid under section 12 in TNVAT. Whereas in TNVAT Portal Section 12 purchase tax need to be manually entered for c/fd, there is no provision in the TNVAT portal to c/fd automatically section 12 tax or to adjust against tax payment. Now Department is demanding to pay tax again because tax is not getting reflected as c/fd in June 2017 return. kindly provide me solution to approach the above issue

[Shilpi Jain]

In case it was a credit eligible under TNVAT you could consider approaching the HC since the HCs have taken views in the past that an eligible credit which is a accrued and indefeasible right should not be denied due to procedural errors of not mentioning in the returns or non-filing of TRAN-1.

However, note that only if it is an eligible credit under the earlier law and mere carry forward has some miss or error, you may not get relief.

[Padmanathan KV]

Agreed with views of Shilpi Ma'am. The Department cannot deny the credit which is otherwise eligible to you, only for the reason that it was not manually entered for c/d. File a reply giving proof of payment, eligibility of said credit etc. There are many CESTAT and High Court decision on the same issue.

[Ganeshan Kalyani]

Transitional credit claim is questioned a lot about it's correctness, eligibility etc. You have to fight it out if there are evidence that proves it is your eligible credit.

AI Summary

Transitional credit entitlement preserved despite procedural omission, pursue remedies with evidence and precedent-backed arguments. The taxpayer's unreflected carry forward of transitional credit under the predecessor TNVAT law arose from a portal requirement for manual TRAN 1 entry; the department demands payment because the credit did not appear in the return. If the credit is substantively eligible it may be an accrued, indefeasible right and should not be denied solely for procedural omission; the taxpayer should file a reply with proof of payment and eligibility and, if necessary, pursue remedies invoking relevant precedents to protect the entitlement.