2018 (7) TMI 1096 - HC - GST

Input tax Credit - transition to GST - case of petitioner is that though he attempted to upload it within the time, he failed because of some system error - Held that - The petitioner may apply to the sixth respondent, the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner s uploading FORM GST TRAN-1, without reference to the time-frame - petition disposed off.

Summary

Issues:
The petitioner, a registered dealer under the Kerala Value Added Tax Act, migrated to the Goods and Services Tax regime. He faced a technical glitch while attempting to upload FORM GST TRAN-1 within the stipulated time to avail input tax credit. The main issue is whether the petitioner should be allowed to take credit of the available input tax despite the system error.

Analysis:
The judgment delivered by Justice Dama Seshadri Naidu addresses the petitioner's plea for directions to enable him to utilize the input tax credit available at the time of migration to the Goods and Services Tax regime. The court considered the circular issued by the Government of India establishing an IT Grievance Redressal Mechanism to address taxpayer grievances due to technical glitches on the GST Portal. The circular outlines the procedure for taxpayers to report glitches and seek resolution through nodal officers appointed by GSTN, Central, and State governments.

The court noted that not only the petitioner but also others faced similar technical issues and approached the court for resolution. Previous instances where petitioners were permitted to apply to the sixth respondent for issue resolution were highlighted by both counsels. Consequently, the court directed the petitioner to apply to the Nodal Officer for resolution of the technical glitch hindering the upload of FORM GST TRAN-1, without being constrained by the original time-frame requirement.

Furthermore, to provide clarity and set a time frame for resolution, the court specified that if the petitioner applies within two weeks of receiving the judgment, the Nodal Officer must consider the issue and take necessary steps within a week thereafter. If the system error preventing the upload of FORM GST TRAN-1 is beyond the petitioner's control, the authority is mandated to facilitate the petitioner in availing the input tax credit available at the time of migration. These directions were issued to dispose of the Writ Petition effectively.

In conclusion, the judgment emphasizes the importance of addressing technical glitches hindering taxpayers from availing benefits under the GST regime and underscores the role of nodal officers in resolving such issues promptly and fairly. The court's decision aims to ensure that genuine attempts by taxpayers to comply with the law are not thwarted by system errors, ultimately promoting a smoother transition to the Goods and Services Tax framework.