2019 (11) TMI 881 - HC - GST

Filing of GST TRAN -1 - unable to claim transitional input credit - transition to GST regime - HELD THAT - The present petition is disposed of with direction to the respondents to re-open web portals enabling the petitioner to upload its Form GST TRAN-1 electronically or allow the petitioner to file GST TRAN -1 return manually.

Summary

Issues:
Petitioner's challenge to the act of the Commissioner in not allowing submission of GST TRAN-2 return, non-acceptance of TRAN-2 return by GST portal, grievance regarding input tax credit benefit, refusal to accept TRAN-2 form electronically or manually, petitioner's efforts to file electronically, technical glitches in portal affecting filing, Commissioner's examination of grievances, forwarding matter to higher authorities, Board's stance on technical glitches and manual declarations, disadvantageous position due to technical glitches, petitioner's readiness to file electronically but inability due to portal issues.

Analysis:

1. The petitioner challenged the act of the Commissioner for not allowing the submission of GST TRAN-2 return in relation to Part 7A, either electronically or manually. The petitioner had earlier filed a writ petition challenging the non-acceptance of GST TRAN-2 return from July 2017 onwards by the GST portal and the non-consideration of complaints regarding the same by the respondent authorities.

2. The petitioner, a private limited company engaged in the trade of food items, faced difficulties in submitting Form GST TRAN-2 in relation to Part 7A despite being registered under the CGST Act of 2017. The petitioner alleged that the GST portal did not reflect the value of the stock returned by them, affecting their entitlement to input credit on filing of TRAN-2 return. The Commissioner's initial instruction on non-acceptance of TRAN-2 in such cases was found unacceptable due to portal functionality issues.

3. The Court directed the authorities to facilitate the submission of Form GST TRAN-2 electronically or manually for the petitioner. Despite specific directions, the authorities did not allow the filing electronically or manually, citing the petitioner's inability to prove genuine difficulty in uploading the form. The petitioner's counsel argued that glitches in the portal made it impossible to prove efforts made to upload the data.

4. The authorities' refusal to accept the TRAN-2 form electronically or manually could deprive the petitioner of the input tax credit benefit. The Commissioner forwarded the matter to higher authorities for allowing amendments in the petitioner's TRAN-1. The Board's stance on technical glitches and manual declarations was highlighted, emphasizing the need to avoid putting individuals or firms at a disadvantage due to technical issues.

5. The Court emphasized that individuals or firms should not be disadvantaged due to technical glitches preventing timely filing electronically. The petitioner's willingness to file electronically, coupled with portal issues, led to the Court's direction to allow manual submission. The Court directed the authorities to re-open web portals for electronic submission or manual filing of GST TRAN-1 within three months.

6. The Court's decision aimed to ensure that the petitioner is not deprived of the input tax credit rightfully due, addressing the technical challenges faced by the petitioner in filing electronically. The authorities were directed to undertake necessary actions to enable the petitioner to submit the required forms, either electronically or manually, within the specified timeframe.

This analysis provides a detailed overview of the issues raised in the legal judgment, focusing on the petitioner's challenges, the authorities' responses, technical glitches affecting filing, and the Court's directions to address the grievances and ensure the petitioner's entitlement to input tax credit.