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2020 (11) TMI 574 - HC - GSTTime Limit for filing Form TRAN - 1 - carry forward the tax credit pertaining to pre-GST period to GST regime - Vires of Rule 117 of the CGST Rules, 2017 - HELD THAT - Rule 117 of the CGST Rules, 2017 and the parameteria provisions of the U.P. GST Rules provides for carry forward of tax or duty credit under any existing laws or on goods held in stock on the appointed day. The appointed day under the GST regime was 01.07.2017. Learned counsel for the Central GST and the learned Special Counsel for State GST could not inform as to whether any recommendation under sub - Rule (1 A) of Rule 117 was made by the Council and thereupon the Commissioner has extended the date for filing TRAN -1 form. They pray for and are granted three days' time to obtain complete instructions in the matter particularly with regard to the recommendations of the Council and the order of the Commissioner for extension of time for filing TRAN -1 Form under sub - Rule 1/1A of Rule 117 of the CGST Rules/UPGST Rules. Put up as a fresh case on 23.11.2020.
Issues:
1. Technical glitch in filing Form TRAN-1 for tax credit under GST regime. 2. Interpretation of Rule 117 of CGST Rules, 2017 and U.P. GST Rules for carrying forward tax credit. 3. Extension of deadline for submitting FORM GST TRAN-1 due to technical difficulties. Analysis: 1. The petitioner, engaged in retail trade, faced a technical glitch while trying to file Form TRAN-1 to carry forward tax credit from the pre-GST period to the GST regime. Despite multiple attempts, the system displayed error messages, preventing successful submission of the form. 2. Rule 117 of the CGST Rules, 2017, and U.P. GST Rules outline provisions for carrying forward tax or duty credit from existing laws to the GST regime. The appointed day for this transition was 01.07.2017. The rule specifies a deadline for submitting FORM GST TRAN-1 electronically within ninety days of the appointed day, allowing for the declaration of input tax credit of eligible duties and taxes. 3. The Court noted that Rule 117(1A) permits an extension of the deadline for submitting FORM GST TRAN-1 in cases of technical difficulties on the common portal. However, the involvement of the Council's recommendation and the Commissioner's order for such an extension needed clarification. The Central GST and State GST counsels were given three days to provide complete instructions regarding the recommendations and the order for extending the deadline. In conclusion, the judgment highlighted the challenges faced by the petitioner in filing Form TRAN-1 due to technical glitches and emphasized the importance of complying with the provisions of Rule 117 for carrying forward tax credit under the GST regime. The Court deferred the case for further clarification on the extension of the deadline, stressing the need for complete instructions from the concerned authorities.
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