2018 (8) TMI 1414 - HC - GST

Input Tax Credit - Unable to to upload FORM GST TRAN-1 within the stipulated time - migration to GST regime - Held that - The Government of India has issued Circular No.39/13/2018-GST, dated 03.04.2018, for setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal - the petitioner may apply to the additional 4th respondent, the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner s uploading FORM GST TRAN-1, without reference to the time-frame - petition allowed.

Summary

Issues:
1. Failure to upload FORM GST TRAN-1 within stipulated time due to system error.
2. Seeking directions to take credit of available input tax.
3. Applicability of Circular No.39/13/2018-GST to address technical glitches on GST Portal.
4. Previous instances of technical glitches faced by taxpayers.
5. Permission to apply to the Nodal Officer for issue resolution.
6. Timeframe for applying and resolution process for uploading FORM GST TRAN-1.

Analysis:
The petitioner, a registered dealer under the Kerala Value Added Tax Act, now migrated to the Goods and Services Tax regime, faced a challenge in uploading FORM GST TRAN-1 within the stipulated time due to a system error. The petitioner sought directions to enable him to take credit of the available input tax. The High Court considered the issue and referred to Circular No.39/13/2018-GST issued by the Government of India to address technical glitches on the GST Portal. The circular outlined the procedure for taxpayers to address glitches through nodal officers and emphasized the need for evidence to establish a bona fide attempt to comply with the due process of law.

In previous instances, not only the petitioner but also other individuals encountered similar technical glitches and approached the Court for resolution. The Court had previously permitted petitioners to apply to the additional 4th respondent, the Nodal Officer, for issue resolution. Therefore, in this case as well, the petitioner was directed to apply to the Nodal Officer for assistance in uploading FORM GST TRAN-1, without being constrained by the time-frame requirement. The Court ordered the Nodal Officer to look into the issue and facilitate the petitioner's upload.

The Court further emphasized that if the petitioner applied within two weeks of the judgment, the Nodal Officer should consider and take necessary steps within a week thereafter. In cases where uploading FORM GST TRAN-1 was not feasible due to reasons beyond the petitioner's control, the authority was directed to enable the petitioner to take credit of the input tax available at the time of migration. With these directions, the Court disposed of the Writ Petition, providing a practical solution for addressing the technical glitch and ensuring the petitioner's rights to claim input tax credit were safeguarded.