TaxTMI 
TaxTMI 
Guidelines for verifying the Transitional Credit in light of the order of the Hon'ble Supreme Court in the Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709- 32710/2018, order dated 22.07.2022 & 02.09.2022
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....onal proper officer in a time bound manner in accordance with the directions issued by Hon'ble Supreme Court vide order dated 22.07.2022 in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018 are issued as under. The operative portion of the judgment is as follows: "1. Goods and Service Tax Network (GSTN) is directed to open common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. w.e.f. 01.09.2022 to 31.10.2022. 2. Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressa/ Committee (ITGRC). 3. GSTN has to ensure that there are no technical glitch during the said time. 4. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitiona/ credit and pass appropriate orders thereon on merits a....
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....filed TRAN-1 / TRAN-2 on the common portal. 4. To ensure uniformity in the implementation of the directions of the Hon'ble Supreme Court, across field offices, the Commissioner, in exercise of powers conferred by section 168 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as "TNGST Act"), hereby issues the following guidelines for verifying the Transitional Credit: 5. Verification of the Transitional Credit 5.1 The jurisdictional proper officers can access the TRAN-1 / TRAN-2 filed/revised by the applicant on their back office systems. Further, a self-certified downloaded copy of TRAN-1 / TRAN-2 filed/revised by the applicant shall also be made available to the jurisdictional proper officer by the said applicant as mentioned in Para 4.5 of Circular read in the reference first cited. 5.2 The verification of the transitional credit shall be conducted by the jurisdictional proper officer who will pass an appropriate order regarding the veracity of the claim filed by the applicant, based on all the facts and the provisions of the law. In respect of TRAN-1 / TRAN-2 filed/revised by the applicant under the administrative control of the sta....
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.... refer the said claim for verification of component of central tax to his counterpart central tax authority. For this purpose, he shall share the list of GSTINs/ARNs with the counterpart officer, in respect of which verification report is needed from him, on a weekly basis, along with an intimation of the same to the nodal officer of state tax as well as central tax referred in Para 6.1 below through his official email ID or physically. Similar action, as above, shall also be taken by the jurisdictional central tax officers in cases where the applicant is under the jurisdiction of central tax authority and where the transitional credit claimed has component of state tax also. 5.3.3 The jurisdictional proper officer shall, in parallel, continue the verification of the remaining portion of the transitional credit at his end. 5.3.4 The jurisdictional proper officer and the counterpart tax officer shall verify the transitional credit claimed under the SGST or the CGST head, as the case may be, by referring to the guidelines detailed in Annexure I to this circular for transitional credit pertaining to state tax and the guidelines issued by the CBIC for verification of transitional....
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....l proper officer to the applicant preferably within a period of seven days from the receipt of report from the counterpart officer, seeking explanation of the applicant as to why the said credit claimed by him should not be denied wholly / partly, as the case may be. The applicant shall also be provided an opportunity of personal hearing by the jurisdictional proper officer in such cases. If required, the jurisdictional proper officer may seek comments of the counterpart officer on the submissions made by the applicant in so far as the said submission relates to the tax (central or State) being administered by such counterpart officer. 5.3.8 After considering the facts of the case, including verification report received from the counterpart officer, submissions made by the applicant and the comments, if any, of the counterpart officer on the same, the jurisdictional proper officer shall proceed to pass a reasoned order, preferably within a period of fifteen days from the date of personal hearing, specifying the amount of transitional credit allowed to be transferred to the electronic credit ledger of the applicant and upload a pdf copy of the said order, on the common portal for....
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.... briefly described below. It is advised that the full text of law be referred for better understanding of the issue. SI. Table No. No. in TRAN-1 1 Table 5 (b) 2 Table 5 (c) 3 Table 6 (b) Provision in SGST Act/Rules 140 (1) 140 (4)(a) 140 (2) 4 Table 7 140 (5) (b) & 5 Table 7 (c) 6 Table 7 (d) 140 (7) 140 (3), 140 (4)(b), & 140 (6) Rule 117 (4) Indicative list of nature of Credit Details of statutory forms received for which credit is being carried forward period 1st April 2015 to 30th June 2017. (Form C,F,H & I) Amount of tax credit carried forward to electronic credit ledger as State Tax. (For all registrations on the same PAN and in the same State) Amount of un-availed input tax credit (Capital goods) carried forward to electronic credit ledger as State (For all registrations on the same PAN and in the same State) Amount of eligible duties and taxes/VAT/ET in respect of inputs or input services under section 140(5) and section 140(7) Amount of VAT and Entry Tax paid on inputs supported by invoices/documents evidenc....
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....-2 is not taken through return in FORM GSTR-3B. This can lead to double credit being taken. Page 10 of 13 ANNEXURE-II VERIFICATION REPORT FOR TRAN-1 / TRAN-2 TO BE SUBMITTED BY THE COUNTERPART OFFICER TO THE JURISDICTIONAL TAX OFFICER 1. Basic information: (a) Name (b) GSTIN (d) Whether transition credit claimed earlier Yes/No 2. (a) Whether SCN/Adjudication order issued in respect of credit availed through TRAN-1 / TRAN-2 filed earlier; if "Yes", provide reference number and date: (a) (b) (c) (b) If answer to (a) above is "Yes", then amount of transitional credit disallowed/proposed to be disallowed out of total claim filed by the applicant earlier: *Table of TRAN-1/ TRAN-2 Amount of credit disallowed/ proposed to be disallowed @Grounds on which credit is disallowed/ proposed to be disallowed $ Whether recovered Notes: 1. Add additional rows if required 2. * Specify the serial number of the Table (of earlier filed TRAN-1/ TRAN-2), the credit in respect of which has either been disallowed through an order or is proposed to be disallowed through an SCN 3. **Spec....