2018 (7) TMI 1418 - HC - GST

Failure to upload FORM GST TRAN-1 within the stipulated time - case of petitioner is that though he attempted to upload it within the time, he failed because of some system error - input tax credit - migration to GST - Circular No.39/13/2018-GST, dated 03.04.2018 - Held that - Not only the petitioner but also many other people faced this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioners to apply to the Nodal Officer for the issue resolution - the petitioner may apply to 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 allowed.

Summary

Issues involved:
Claim for input tax credit under Goods and Services Tax regime due to technical glitch in uploading FORM GST TRAN-1 within stipulated time.

Analysis:

The petitioner, a registered dealer under the Kerala Value Added Tax Act, migrated to the Goods and Services Tax regime. He sought directions to enable him to take credit of the available input tax, which he failed to upload within the stipulated time due to a system error. The Court considered Circular No.39/13/2018-GST issued by the Government of India, which established an IT Grievance Redressal Mechanism for taxpayers facing technical glitches on the GST Portal. The circular outlined the procedure for taxpayers to address issues related to technical glitches, emphasizing the need for evidence to establish a bona fide attempt to comply with the due process of law.

The Court noted that not only the petitioner but also many others faced similar technical glitches and approached the Court for resolution. Previous instances where the Court permitted petitioners to apply to the Nodal Officer for issue resolution were highlighted. In this case, the Court directed the petitioner to apply to the Nodal Officer, who would look into the issue and facilitate the uploading of FORM GST TRAN-1 without reference to the time-frame. The Court set a time frame for the petitioner to apply to the Nodal Officer, stating that if the application is made within two weeks after receiving the judgment, the Nodal Officer must consider and take steps within a week thereafter. If uploading FORM GST TRAN-1 is not possible for reasons not attributable to the petitioner, the authority must enable him to take credit of the input tax available at the time of migration.

In conclusion, the Court disposed of the Writ Petition with directions for the petitioner to apply to the Nodal Officer for resolution of the technical glitch in uploading FORM GST TRAN-1, ensuring that the petitioner can avail the input tax credit available at the time of migration under the Goods and Services Tax regime.