2019 (8) TMI 861 - HC - GST

Extension of time period for filing of GST Tran-1 - transition to GST regime - transitional credit - petitioner has alleged in the petition that despite making several efforts on the last date for filing of the application, the electronic system of the respondent no.2 did not respond, as a result of which the petitioner is likely to suffer loss of the credit that it is entitled to by passage of time - HELD THAT - The respondents are directed to reopen the portal within two weeks from today. In the event they do not do so, they will entertain the GST TRAN-1 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner. List this matter on 20.09.2019.

Summary

Issues involved:
Extension of time period for filing GST Tran-1 application due to technical issues leading to potential loss of credit entitlement.

Analysis:
The petitioner sought a writ of mandamus directing the GST council to recommend to the State Government to extend the time period for filing GST Tran-1 due to technical issues faced by the petitioner on the last filing date. The petitioner claimed that despite multiple attempts, the electronic system did not respond, putting the petitioner at risk of losing entitled credit. The court directed the respondents to reopen the portal within two weeks or manually entertain the petitioner's GST TRAN-1 application for verification of credits claimed. Moreover, the petitioner was to be allowed to pay taxes through the regular electronic system to utilize the credit. The respondents were given a month to file a counter affidavit, and the matter was listed for further hearing on a specified date.

This judgment highlights the importance of ensuring that technical glitches do not hinder taxpayers from availing their entitled credits under the GST regime. The court's intervention in directing the respondents to address the petitioner's concerns and provide a solution demonstrates the judiciary's role in safeguarding taxpayer rights and ensuring fair treatment in the implementation of tax laws. The decision to allow manual processing of the application if the portal is not reopened promptly showcases a pragmatic approach to resolving issues arising from technological failures. The court's emphasis on due verification of credits claimed by the petitioner underscores the significance of accurate and efficient administration of the GST system to prevent any potential loss or injustice to taxpayers.