https://www.taxtmi.com/forum/issue?id=117396 The issue concerns transitional credit taken in FORM GSTR 3B instead of by TRAN 1, prompting a show cause notice demanding interest under Section 50. Although the VAT credit appears bona fide, the procedural requirement under Section 140 and Rule 117 was not followed. Administrative advisories and some precedents permit reconciliation and regularisation where no double credit occurred or where portal failures prevented TRAN 1 filing, but the department can disallow credit and impose interest or penalties; exhausting departmental remedies and citing favourable cases at personal hearing is the recommended approach prior to filing writs. en-us Mon, 02 Aug 2021 13:59:18 +0530 Thu, 23 Jan 2025 15:54:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117396 The issue concerns transitional credit taken in FORM GSTR 3B instead of by TRAN 1, prompting a show cause notice demanding interest under Section 50. Although the VAT credit appears bona fide, the procedural requirement under Section 140 and Rule 117 was not followed. Administrative advisories and some precedents permit reconciliation and regularisation where no double credit occurred or where portal failures prevented TRAN 1 filing, but the department can disallow credit and impose interest or penalties; exhausting departmental remedies and citing favourable cases at personal hearing is the recommended approach prior to filing writs. Discussion-Forum GST Mon, 02 Aug 2021 13:59:18 +0530 https://www.taxtmi.com/forum/issue?id=117396