2019 (5) TMI 729 - HC - GST

Extension of time period for filing of GST Tran-2 - input tax credit - transition to GST Regime - HELD THAT - The respondents are directed to reopen the portal within one month from today. In the event they do not do so, they will entertain the GST TRAN-2 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner. List this matter on 3.7.2019.

Summary

Issues:
1. Petitioner seeks writ of mandamus to extend time for filing GST Tran-2.
2. Allegation of electronic system failure on last filing date.
3. Direction to respondents to reopen portal or entertain manual filing.
4. Requirement for due verification of credits and allowing tax payment.

Analysis:
1. The petitioner approached the court seeking a writ of mandamus directing the GST council to recommend to the State Government an extension of the time period for filing GST Tran-2 due to the petitioner's application not being entertained on the last date of 30.6.2018. The petitioner requested to file the complete GST TRAN-2 for necessary transactional credit.

2. The petitioner alleged in the petition that despite multiple attempts on the last filing date, the electronic system of the respondent did not respond, potentially causing the petitioner to lose entitled credit over time. This failure of the electronic system was highlighted as a critical issue affecting the petitioner's ability to claim legitimate credits.

3. In response to the petitioner's plea, the court directed the respondents to either reopen the portal within one month from the judgment date or accept the manual filing of GST TRAN-2 from the petitioner. The court emphasized the importance of due verification of the credits claimed by the petitioner to ensure accuracy and fairness in the process.

4. Furthermore, the judgment outlined that if the respondents fail to reopen the portal, they must entertain the manual filing and subsequently pass orders after verifying the credits claimed by the petitioner. Additionally, the court instructed that the petitioner should be allowed to pay taxes using the regular electronic system, ensuring smooth operations for utilizing the credit that may be considered for the petitioner's benefit.

In conclusion, the court provided a clear directive to address the petitioner's concerns regarding the filing of GST Tran-2, emphasizing the need for timely action and verification to safeguard the petitioner's rights and prevent any potential loss of entitled credit.