2022 (1) TMI 852 - HC - GST

Permission for filing of declaration in form GST TRAN-1 and GST TRAN-2 - transitional credit - HELD THAT - We are happy to learn from Mr. Shraff that the problem has been resolved. The respective applicants have received the credit. We must place on record our appreciation for the efforts put in by Mr. Devang Vyas, the learned Additional Solicitor General of India in resolving the problem. Nothing further requires to be adjudicated. All the applications are disposed of accordingly.

Summary

Issues:
Compliance with court directions regarding filing of declarations in form GST TRAN-1 and GST TRAN-2 for claiming transitional credit under Section 140(3) of the Act.

Analysis:
The judgment by the Gujarat High Court addressed the issue of compliance with court directions related to filing declarations for claiming transitional credit under the Goods and Service Tax Act. The court noted that the respondents had failed to implement the directions issued in a previous judgment, leading to the present applications. The stance of the Principal Commissioner, Central GST, highlighted the involvement of State GST authorities in the implementation of the court's directions. Additionally, the Nodal Officer emphasized the necessity of GSTN's involvement for effective compliance, mentioning challenges faced due to pending matters in the Supreme Court.

The court further discussed communication between the Nodal Officer and GSTN, where GSTN clarified its role in the process and the need for approval from the concerned authority for filing declarations. The respondents assured that efforts were underway to comply with the court's directions. Reference was made to a recent order by the Calcutta High Court, suggesting an alternative approach for resolving similar difficulties faced by assesses, emphasizing the need for an assessee-friendly solution.

The judgment highlighted the Calcutta High Court's suggestion of allowing assesses to file individual tax credit in GSTR-3B Forms as an alternative to opening the portal, providing more flexibility for compliance. The court urged the Nodal Officer to explore this possibility. The matter was adjourned for further hearing, expecting a positive update on compliance by a specified date. Subsequently, during the next hearing, it was confirmed that the issue had been resolved, and the applicants had received the credit. The court appreciated the efforts of the Additional Solicitor General in resolving the problem, leading to the disposal of all applications.

In conclusion, the judgment emphasized the importance of compliance with court directions regarding transitional credit claims under the GST Act, highlighting the collaborative efforts of the parties involved in resolving the issue and ensuring effective implementation of the court's directives.