2018 (7) TMI 1746 - HC - GST

Input tax credit - 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 - 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. In this case also, the petitioner may apply to the 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:
1. Failure to upload FORM GST TRAN-1 within stipulated time due to system error.
2. Availability of input tax credit at the time of migration to Goods and Services Tax regime.
3. Legal recourse for addressing technical glitches on GST Portal.

Analysis:
1. The petitioner, a registered dealer under the Kerala Value Added Tax Act, migrated to the Goods and Services Tax regime and sought to use the input tax credit available at the time of migration by uploading FORM GST TRAN-1 within the prescribed time. However, the petitioner faced a system error preventing successful upload within the deadline. The petitioner petitioned the court for directions to enable the utilization of the available input tax credit despite the delay caused by the technical glitch.

2. The court considered a circular issued by the Government of India establishing an IT Grievance Redressal Mechanism to address taxpayer grievances arising from technical issues on the GST Portal. The circular outlined a procedure for taxpayers to report glitches to nodal officers, providing necessary evidence to demonstrate their attempts to comply with legal requirements despite technical obstacles. In this case, not only the petitioner but several others encountered similar technical glitches, prompting them to seek redressal through the court. The court, in line with previous instances, directed the petitioner to apply to the Nodal Officer for resolution of the issue related to uploading FORM GST TRAN-1, irrespective of the time-frame.

3. The court ordered the petitioner to submit an application to the Nodal Officer, who would then investigate the matter and facilitate the uploading of FORM GST TRAN-1 without being bound by the original deadline. Additionally, the court set a timeline for the Nodal Officer to address the petitioner's application promptly. If the uploading of FORM GST TRAN-1 remained unfeasible due to reasons beyond the petitioner's control, the authority was directed to enable the petitioner to avail the input tax credit accrued during the migration period. Thus, the court provided a legal remedy for taxpayers encountering technical glitches during the transition to the Goods and Services Tax regime, ensuring the protection of their rights and entitlements under the law.