Form GST TRAN-1 (Transitional Credit)
The Bombay High Court allowed the petition for Transitional Credit in form GST TRAN-1 to be revised. The petitioner, Gayatri Agro Agencies, claims that the new regime created several loopholes in the web-based submission of forms program after the implementation of the Central Goods and Service Tax Rules, 2017, and the Central Goods and Service Tax Act, 2017. The Gayatri Agro Agencies were authorized to carry forward accumulated CENVAT up to 30 June 2017 under this system, as per section 140 of the Act.
The petitioner filed a GST TRAN-1 form, claiming credit of Rs. 66,45,387 under the VAT Act and Rs. 7,77,489 under the Excise Act.
The form was filed as part of the Good and Services Tax Department’s acknowledgment process. When the plaintiff went to the homepage, he came across a notice that said: “pending bills” (these will be shared post validation). Due to GST site vulnerabilities, the petitioner discovered that the form had not been properly filed. As a result, the petitioner filed a complaint about the problems, and copies of the complaint were filed with the court. After filing a series of grievances on 9/Dec/2017, 27/12/2017, and 30/12/2017, the petitioner received notice from the GST site on 02.01.2018 and 08.01.2018 that the complaint could not be resolved since the deadline for filing the GST TRAN-1 form return had passed.
On 8/Jan/2018 and 20/Feb/2018, the petitioner attempted to manually submit the amended GST TRAN-1 form and informed the department about technical problems on the GST site.
In the wake of an order issued by the Haryana High Court and the Division Bench of Punjab in Advert Technologies Pvt. Ltd. Vs. Union of India and an order granted by the learned Division Bench of the High Court in Gujarat in Siddharth Enterprises Vs. The Nodal Officer, 2019, the division bench of Justice Ravindra V. Ghuge and S. G. Mehari allowed the petitioner to tender the revised GST TRAN-1 f.
General FAQs regarding the GST TRAN-1
The following are some common questions that taxpayers have about completing the GST TRAN-1 form.
What are Transitional Provisions?
According to the SGST/ CGST/ UTGST Act’s transitional norms, registered taxpayers can claim credit for taxes paid under previous state or federal laws, such as VAT, CETA, and Service Tax laws, and bring them under the GST regime if the same is eligible for SGST/ CGST/ UTGST credit, subject to the GST Act’s norms and restrictions. Form GST TRAN – 1 and TRAN – 2 can be used to claim transitional credits.
Why do taxpayers have to file GST TRAN – 1?
Every registered taxpayer who is entitled to credit for duties paid under current legislation on inputs, input services, or capital goods in their electronic credit ledger must submit a declaration in Form GST TRAN – 1 within ninety days+ extended periods of the appointed day (1st/7/2017.)
The credit will appear in the taxpayer’s Electronic Credit Ledger and may be utilized to discharge liabilities after an error-free GST TRAN – 1 online filing.
What actions must be taken to submit the transition GST TRAN – 1?
To get started, go to the GST portal and look for the TRAN-1 option under the Transition Form part of the Service section. Fill out the e-form and submit it via DSC/EVC.
What is the deadline for submitting the GST TRAN – 1?
Taxpayers must file the GST TRAN – 1 Transition Form within 90 days of the designated date. On the recommendation of the GST council, the commissioner can extend the deadline by another 90 days.
What would the portal response be once the GST TRAN – 1 has been successfully filed?
Portal produces the ARN and awards the transition credit to the taxpayer’s Electronic Credit Ledger when the GST TRAN – 1 form is filed without errors. Under the GST scheme, the taxpayer can utilize the same to offset his or her tax obligations.
In the absence of a DSC/EVC, what are the probable results of filing the GST TRAN – 1 transition form?
Credit obtained in GST TRAN-1 is credited to the digital credit ledger when the Form GST TRAN-1 is submitted without errors. However, for further credit use, form submission with a digital signature is required.
The inability to revise claims in GST TRAN-1 served as a barrier to taxpayers. The judgment of the Bombay High Court to allow claim modification has come as a comfort to taxpayers who had been having a lot of problems requesting claims on the GST site.