2018 (12) TMI 137 - HC - GST

Failure to upload FORM GST TRAN-1 within the stipulated time - input tax credit - Held that - The petitioner may apply to the additional sixth respondent 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 the petitioner to take credit of available input tax.
3. Application of circular for IT Grievance Redressal Mechanism.
4. Permission to apply to Nodal Officer for issue resolution.
5. Facilitation of uploading FORM GST TRAN-1 without reference to time-frame.

Analysis:
The petitioner, a registered dealer under the Kerala Value Added Tax Act, migrated to the Goods and Services Tax regime and faced a challenge in utilizing the input tax credit available at the time of migration due to a system error preventing the upload of FORM GST TRAN-1 within the prescribed time frame. The petitioner sought directions to rectify this issue and enable the utilization of the available input tax credit.

The court considered a circular issued by the Government of India regarding an IT Grievance Redressal Mechanism to address taxpayer grievances arising from technical glitches on the GST Portal. This circular outlined the procedure for taxpayers to follow in case of demonstrable glitches on the Common Portal hindering compliance with legal processes. The circular emphasized the appointment of nodal officers by GSTN, Central, and State governments to address such issues.

Acknowledging that the petitioner was not the only one facing this technical glitch, the court permitted the petitioner to apply to the additional sixth respondent Nodal Officer for issue resolution, following the precedent of earlier cases where similar permissions were granted. The court directed the petitioner to approach the Nodal Officer for facilitation in uploading FORM GST TRAN-1, without being constrained by the original time-frame requirement.

Furthermore, the court provided a timeline for the resolution process, stating that if the petitioner applied within two weeks of receiving the judgment, the Nodal Officer would review the application and take necessary actions within a week thereafter. In cases where the uploading of FORM GST TRAN-1 was hindered by reasons beyond the petitioner's control, the authority was mandated to enable the petitioner to avail the credit of the input tax available during migration. The court disposed of the Writ Petition with these directions, ensuring a pathway for resolving the petitioner's issue regarding input tax credit utilization.