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.
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....ments 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 Redressal Committee (ITGRC). 3. GSTN has to ensure that there are no technical glitches during the said time. 4. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned. 5. Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger. 6. If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims. The Special Leave Petitions are disposed of accordingly. Pending applications, if any, also stand disposed of." 1.2. Subsequently in Miscellaneous Application No. 1545-1546/2022 in SLP(C) No. 32709-32710/2018, Hon'ble Supreme Court vide order dated ....
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....ack office systems i.e. BO portal. Further, a self-certified downloaded copy of TRAN-1/TRAN-2 filed/revised by the applicant shall also be made available to the jurisdictional tax officer by the said applicant as mentioned in Para 4.5 of GST Circular No. 12/2022 dated 15.09.2022. 5.2 The verification of the transitional credit shall be conducted by the jurisdictional tax 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 state tax authorities, such verification and issuance of order shall be done by the jurisdictional officer of State tax, whereas in respect of TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the central tax authorities, the same shall be done by the jurisdictional officer of central tax. The jurisdictional tax officer shall start the verification process immediately on availability of TRAN-1/TRAN-2 filed/revised by the applicant on the back office system or on receipt of self-certified downloaded copy of the same from the applic....
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....der the jurisdiction of central tax officer and where the transitional credit claimed has component of state tax also. 5.3.3 The jurisdictional tax officer shall, in parallel, continue the verification of the remaining portion of the transitional credit at his end. 5.3.4 The jurisdictional tax officer and the counterpart tax officer shall verify the transitional credit claimed under CGST or the SGST Act as the case may be, by referring to the guidelines detailed in Annexure I to this circular and Annexure-I of CBIC circular no. 182/14/2022-GST, dated 10.11.2022 for transitional credit pertaining to state tax and central tax as applicable. While conducting the verification, the officer must also check whether any adjudication or appeal proceedings in TRAN-1/TRAN-2 related matter are pending/ concluded against the applicant. In such cases, where any adjudication or appellate proceedings have been initiated against the applicant in respect of TRAN-1/TRAN-2, the officer should take a note of the relevant facts in the notice/ order, and the grounds/reasons for inadmissibility of transitional credit, if any, in the said notice/ order. It is pertinent to note that the verification o....
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....tax 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 (State or central) 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 tax 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 crediting the amount of allowed transitional credit to the electronic credit ledger of the applicant. In any case, such order shall be passed within a period of 90 days from 01.12.2022 i.e. up to 28.02.2023. 5.3.9 Where the amount credited to the electronic credit ledger pursuant to the originally filed TRAN-1/TRAN-2 exceeds the amount of credit admissible in terms of the revised TRAN-1/TRAN-2 filed by the applicant, such ....
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....2 Column 10 of table 6(b) 140(2) This table captures details of un-availed credit of capital goods in the pre-GST era. This table is meant to be used by the taxpayers who have availed a portion of VAT credit on capital goods through VAT return and now intend to avail remaining credit in respect of capital goods which has not been availed through the VAT return. The said amount of credit should have been admissible as input tax credit under GST law as well as under existing law 3 Table 7(b), (c) & (d) 140(3), 140(4)(b), 140(5), 140(6) and 140(7) This table pertains to credit claim by new taxpayers or taxpayers who were either not registered or were not part of VAT Credit chain earlier. Here, Credit can be claimed in TRAN-1 in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day based on invoice/document evidencing payment of tax, subject to fulfilment of other conditions specified in section 140(3), 140(4)(b), 140(5), 140(6) and 140(7) as the case may be. Further, Table 7(b) captures transitional credit taken on such inputs which were received after 1st of July, 2017 but taxes on which were pa....
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.... taken as per Explanation to section 140 (2). In respect of invoices involving large credit, due verification as deemed fit may be done. Check the details of credit relatable to the capital goods other than those on which Input tax credit has been claimed in the VAT period and whether this Input tax credit is Eligible under the GST Law, if the Input tax credit is eligible, the same may be allowed, if not eligible, the same shall be restricted by passing order of demand under section 73 or 74 of the RGST Act, 2017. Also check the calculation of Input tax credit eligible on the capital goods as per the RGST Rules, 2017. Check whether the transitional credit claimed is eligible for Input tax credit both under the VAT Law and GST Law. Check for Table 7(b), (c) & (d): 5.1 Check 3: 5.1.1 Check the tax paid document exist and take confirmation from the taxpayer that the tax paid document is recorded in the books of account of such person as per the conditions prescribed in law. Where goods under movement are shown in exorbitant quantity, transport verification may be considered. 5.1.2 Check whether goods sold by the registered person in the VAT period is exempted goods a....
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....dication order issued in respect of credit availed through TRAN-1/TRAN-2 filed earlier; if "Yes", provide reference number and date: (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 ^5Whether recovered (a) (b) (c) 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) #Specify the amount which has been disallowed/proposed to be disallowed 4) @Specify the grounds for disallowance of the said credit 5) $Specify whether amount has been recovered, either in cash or debit to credit ledger 6) Attach copies of the relevant notice/ adjudi....