2024 (3) TMI 1214 - HC - GST

Seeks to refund the GST - deposited against the non-migrated GST - HELD THAT - Learned counsel appearing for the respondent submits that there is no provision available in the GST portal for transfer of the credit from one GST number to another. He however concedes that the petitioner did not opt for the migration of the service tax registration and the system automatically created a GST number (i.e. the non-migrated GST number). We direct that the amount standing to the credit of the non-migrated GST number be transferred to the migrated GST number of the petitioner. The petition is disposed of in the above terms.

Summary

Issues involved:
The issues involved in this case are the refund of GST deposited against a non-migrated GST number and the transfer of credit from a non-migrated GST number to a migrated GST number.

Refund of GST:
The petitioner sought a direction for the respondent to refund the GST amount of Rs. 16,19,838/- deposited against the non-migrated GST number 07AAACB0226C1ZJ. The petitioner was initially registered under the Service Tax Regime and possessed both a VAT number and a service tax number. Upon the introduction of the GST Regime, registrations were to be migrated into a GST number. The petitioner opted for the migration of its VAT registration only, resulting in the allotment of a GST number 07AAACB0226C2ZI. It was later discovered that the service tax registration number had also been migrated without the petitioner's knowledge, leading to the creation of a non-migrated GST number. The petitioner, unaware of the non-migrated GST number, only used the migrated GST number until a client mentioned a discrepancy in GST credit, prompting the petitioner to investigate and find the amount lying to their credit in the non-migrated GST number. The petitioner sought a refund or the transfer of the amount to the migrated GST number.

Transfer of Credit:
The respondent contended that there was no provision on the GST portal for transferring credit between GST numbers. However, it was acknowledged that the petitioner did not opt for the migration of the service tax registration, resulting in the automatic creation of the non-migrated GST number. In light of the unique circumstances, the court directed the transfer of the amount credited to the non-migrated GST number to the migrated GST number of the petitioner. Additionally, the respondent and the Central Board of Indirect Taxes and Customs were instructed to address the issue of automatic generation of non-migrated GST numbers. Steps were to be taken to identify and cancel such non-migrated numbers within four weeks. A compliance report on active non-migrated GST numbers was scheduled for a specific date, with the order to be communicated to the Board for necessary action.