2022 (8) TMI 1326 - HC - GST

Transitional Credit while migrating to the Goods Services Tax regime - HELD THAT - Reliance placed in the case of UNION OF INDIA ANR. VERSUS FILCO TRADE CENTRE PVT. LTD. ANR. 2022 (7) TMI 1232 - SC ORDER where it was held that 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. The writ petition disposed off.

Summary

Issues:
Availing Transitional Credit under Goods & Services Tax regime

Analysis:
The judgment addressed the issue of availing Transitional Credit while migrating to the Goods & Services Tax regime. It referred to a previous judgment by the Supreme Court in Union of India v. Filco Trade Centre Pvt. Ltd., which had already addressed the matter. The Supreme Court, in the Filco Trade Centre case, issued specific directions to address the challenges faced by taxpayers during the transition to GST. These directions included opening a common portal for filing forms for availing Transitional Credit, allowing taxpayers to file or revise forms regardless of pending writ petitions or decisions by the ITGRC, ensuring no technical glitches on the portal, providing officers 90 days to verify claims, reflecting allowed Transitional credit in the Electronic Credit Ledger, and empowering the GST Council to issue guidelines for scrutinizing claims.

The High Court, in the current case, applied the directions issued by the Supreme Court in the Filco Trade Centre case to the present matter. Consequently, the Writ Petition related to availing Transitional Credit was disposed of based on the terms laid out by the Supreme Court. The judgment aimed to streamline the process for taxpayers to transition smoothly to the GST regime and ensure the proper verification and reflection of Transitional Credit in the Electronic Credit Ledger.