The Hon’ble Supreme Court of India vide its order dated 22.07.2022 in the matter of Union of India & Anr. Vs. Filco Trade Centre Pvt. Ltd. & Anr. had issued directions and disallowed Special Leave Petition (‘SLP’) filed by the revenue. The Apex Court issued certain directions for Goods and Services Tax Network (‘GSTN’) for availing the transitional credit through FORM GST TRAN-1 and TRAN-2 for the period of an additional two (2) months commencing from 01.09.2022 to 31.10.2022.
Brief Background
Form GST TRAN-1 and TRAN-2 were introduced to benefit the assessee by taking Pre-GST credits available to the assessee at the time of enacting the GST Act. As per Rule 117 of CGST Tax Rules, 2017 the assessee can avail of such credit within ninety (90) days from the date when GST Act, 2017 came into force i.e. 01.07.2017.
It was observed that different High Courts have passed directions for extending the timelines within which Form GST TRAN-1 and TRAN-2 can be filed by the assessee. Aggrieved by the judgement and orders of the various Hon’ble High Courts the revenue has filed an SLP before the Hon’ble Supreme Court of India.
Order
The Hon’ble Supreme Court of India disallowed the said SLP and issued directions for GSTN to open the common portal for filing FORM GST TRAN-1 and TRAN-2 for availing the transitional credit for an additional period of two (2) months commencing from 01.09.2022 to 31.10.2022.
The Hon’ble Supreme Court has also directed that any aggrieved registered assessee is also directed to file the relevant form and revise the already filed form irrespective of whether the assessee has filed the writ petition before the Hon’ble High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee. By passing this order the Hon’ble Supreme Court has also directed GSTN to ensure that there is no technical glitch during the additional period of two (2) months.
Through this order, the Hon’ble Supreme Court has also given ninety (90) days from the period after the filing of Form TRAN-1 and TRAN-2 to the concerned officers to verify the claim/transitional credit and pass appropriate orders thereon on merits after granting the opportunity to the parties. Thereafter, the concerned officer shall allow transitional credit which has to be reflected in the Electronic Credit Ledger.
Our Comments
Opening the widow for an additional period of two (2) months commencing from 01.09.2022 to 31.10.2022 will help many taxpayers across the country to claim the credit of the taxes paid under the erstwhile regime and thus have a vested right to claim such credit under GST Act, 2017 but were denied the benefit due to technical glitches or procedural mistakes.