2018 (8) TMI 1649 - HC - GST

Unable to upload FORM GST TRAN-1 within the stipulated time - availability of Input tax credit - Held that - The Ext.P2 is the circular issued by the Government of India for setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal. - the petitioner may apply to the additional seventh 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:
- Petitioner's failure to upload FORM GST TRAN-1 within stipulated time due to system error.
- Interpretation of circular issued by Government of India regarding IT Grievance Redressal Mechanism for GST Portal.
- Previous instances of technical glitches faced by taxpayers.
- Relief sought by the petitioner to enable credit of available input tax.

Analysis:
The judgment addresses the petitioner's situation as a registered dealer under the Kerala Value Added Tax Act who migrated to the Goods and Services Tax regime but faced a system error preventing the upload of FORM GST TRAN-1 within the required timeframe. The court considered a circular issued by the Government of India establishing an IT Grievance Redressal Mechanism for GST Portal, which outlines procedures for addressing taxpayer grievances due to technical glitches. Noting that the petitioner is not alone in facing this issue, the court directs the petitioner to apply to the Nodal Officer for issue resolution, without strict adherence to the time-frame requirement. This decision aligns with previous instances where the court permitted similar applications for issue resolution.

The judgment emphasizes the importance of addressing technical glitches faced by taxpayers transitioning to the GST regime. By allowing the petitioner to approach the Nodal Officer for resolution, the court ensures that genuine attempts to comply with the law are recognized and facilitated. The court's directive to the Nodal Officer to consider the petitioner's application promptly and take necessary steps within a specific timeframe demonstrates a proactive approach to resolving such issues efficiently. Moreover, the court highlights that if the uploading of FORM GST TRAN-1 is hindered by reasons beyond the petitioner's control, the authority must still enable the petitioner to claim credit for the available input tax during migration.

In conclusion, the judgment provides a practical solution to the petitioner's predicament by leveraging the IT Grievance Redressal Mechanism outlined in the circular. By directing the petitioner to seek redress from the Nodal Officer and ensuring timely consideration of the application, the court upholds the principles of fairness and efficiency in addressing technical challenges faced by taxpayers transitioning to the GST regime. The decision not only benefits the petitioner but also sets a precedent for handling similar cases effectively in the future.