2019 (4) TMI 301 - HC - GST

Revision of Form GST Tran-1 - transitional input tax credit - removal of difficulties in correction/rectification/revision of the FORM GST TRAN-1 - Held that - This Court is of the considered opinion that the petitioner is entitled to revise or rectify the errors in the FORM GST TRAN-1 in terms of Rule 120A wherein the Commissioner is empowered to extend the time period specified in Rule 117. As the petitioner is intending to revise the FORM GST TRAN-1 for the first time, the same squarely comes under Rule 120A. Hence, the respondent authorities ought to have considered the request/representation of the petitioner to permit or allow it to revise the declaration in FORM GST TRAN-1. In view of the Nodal Officers being appointed to address the grievances of the tax payers due to technical glitches, it would be appropriate for this Court to direct the petitioner to approach the Nodal Officer appointed for the State of Karnataka in terms of the circular dated 03.04.2018. It is the specific case of the petitioner that the error could not be rectified only due to the technical glitches. If so, It is incumbent on the Nodal Officer to address the grievances of the petitioner. The writ petition is disposed of with a direction to the petitioner to approach the jurisdictional Nodal Officer and the Nodal Officer is directed to consider the grievances of the petitioner in accordance with law.

Summary

Issues:
1. Revision of declaration in FORM GST TRAN-1 for availing eligible credit.
2. Interpretation of Rule 120A of the CG & ST Rules 2017.
3. Authority of Commissioner to extend time period for revising declaration.
4. Applicability of Section 172 for rectification of errors in FORM GST TRAN-1.
5. IT grievance redressal mechanism for technical glitches on GST Portal.

Issue 1: The petitioner sought to revise FORM GST TRAN-1 to rectify an inadvertent error in transferring credit to a branch. The petitioner faced technical issues on the GST portal preventing the revision post the stipulated time. The petitioner made representations to rectify the error but received no response. The petitioner argued entitlement to revision under Rule 120A.

Issue 2: The petitioner claimed entitlement to revise FORM GST TRAN-1 under Rule 120A, while the Revenue argued that the Commissioner could extend time periods specified in Rules 117, 118, 119, and 120. The court analyzed the relevant provisions of the Act and Rules to determine if the petitioner could revise the declaration to avail eligible credit.

Issue 3: The court examined Rule 117, which mandates submitting FORM GST TRAN-1 within 90 days, extendable by the Commissioner. The Rule was amended to extend the deadline further, indicating the provision for first-time filing. Rule 120A allowed revision of declaration once, not indefinitely, empowering the Commissioner to extend the time period.

Issue 4: Section 172 of the Act addresses removal of difficulties, allowing provisions for rectification of errors in FORM GST TRAN-1. The court considered this section for addressing technical glitches and rectification of errors to ensure effective implementation of Section 140 of the Act.

Issue 5: The court noted the IT grievance redressal mechanism for technical glitches on the GST Portal. Circular instructions were issued to address grievances due to portal issues. The court directed the petitioner to approach the Nodal Officer for the State of Karnataka for grievance redressal due to technical glitches, emphasizing the importance of addressing grievances promptly.

In conclusion, the court held that the petitioner was entitled to revise FORM GST TRAN-1 under Rule 120A. While directing the petitioner to approach the Nodal Officer for grievance redressal, the court emphasized the need for expedited resolution of technical issues to ensure effective implementation of GST provisions.