2018 (10) TMI 1134 - HC - GST

Failure to upload FORM GST TRAN-1 within the stipulated time - system error - transitional credit - migration to GST Regime - Held that - Central and State government would appoint nodal officers in requisite number to address the problem a taxpayer faces due to glitches, if any, in the Common Portal - 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 disposed off.

Summary

Issues:
1. Failure to upload FORM GST TRAN-1 within stipulated time due to system error.
2. Seeking directions to enable credit of available input tax.
3. Application of circular for IT Grievance Redressal Mechanism in GST regime.
4. Previous instances of technical glitches faced by taxpayers.
5. Permission to apply to Nodal Officer for issue resolution.
6. Timeframe for Nodal Officer's consideration and steps for enabling credit of input tax.

Analysis:

1. The petitioner, a registered dealer under the Kerala Value Added Tax Act, migrated to the Goods and Services Tax regime and faced a technical glitch preventing the upload of FORM GST TRAN-1 within the required timeframe due to a system error. The petitioner seeks directions to utilize the input tax credit available at the time of migration.

2. The Court considered a circular issued by the Government of India establishing an IT Grievance Redressal Mechanism for addressing taxpayer grievances related to technical glitches on the GST Portal. The circular outlined procedures for taxpayers to report issues to nodal officers, providing evidence of glitches hindering compliance with legal processes.

3. Not only the petitioner but also several others encountered similar technical glitches, leading them to approach the Court for resolution. Previous instances where the Court permitted petitioners to seek issue resolution from the sixth respondent were highlighted by the learned counsel, emphasizing the need for consistent application of solutions.

4. In this case, the Court directed the petitioner to apply to the Nodal Officer for issue resolution. The Nodal Officer was tasked with examining the problem faced by the petitioner and facilitating the upload of FORM GST TRAN-1 without strict adherence to the original time-frame, ensuring the petitioner's ability to claim the input tax credit.

5. Additionally, the Court specified a timeline for the Nodal Officer's consideration, instructing that if the petitioner applied within two weeks of the judgment, the Nodal Officer should review the application promptly. If circumstances prevented the uploading of FORM GST TRAN-1 for reasons beyond the petitioner's control, the authority was mandated to enable the petitioner to claim the available input tax credit from the migration period.

6. By providing these directions, the Court disposed of the Writ Petition, ensuring that the petitioner and other affected taxpayers could address technical issues related to input tax credit under the GST regime through the designated grievance redressal mechanism.