2019 (8) TMI 815 - HC - GST

Filing of form GST TRAN-1 - transitional credit - transition to GST regime - Central Goods and Services Tax Act, 2017 - HELD THAT - The TC available in the account of the Petitioner is a substantial sum. It is not denied by the Respondent that the Petitioner is entitled to carry forward such TC and use it for payment of the taxes under the CGST Act. It is also not in dispute that there have been numerous glitches on the GST Portal in making it difficult for uploading of the TRAN- 1 Forms. This Court has itself issued orders in numerous cases permitting Petitioners to be afforded one more opportunity to either file the TRAN-1 Form electronically or manually. A direction is issued to the Respondent to either re-open the Portal to enable the Petitioner to file its TRAN-1 Form electronically failing which to permit it to file manually on or before 13th September, 2019 - petition disposed off.

Summary

Issues:
Petitioner seeks direction to file GST TRAN-1 online or manually for transitional credit. Technical glitches in filing form causing financial loss.

Analysis:
1. The Petitioner approached the Court seeking direction to file form GST TRAN-1 online or manually to avail transitional credit of a substantial sum. The Petitioner, engaged in retail, had a significant transitional credit as on 30th June, 2017, which could be carried forward as per Section 140(1) of the CGST Act, 2017. The due date for filing GST TRAN-1 was extended due to technical glitches, but the Petitioner faced errors and was unable to upload the form, resulting in financial loss due to inability to claim the credit.

2. Despite efforts to resolve the issue through an IT Grievance Redressal Committee and notifications extending the deadline, the Petitioner did not receive a response or a link to upload the form. The Court acknowledged the challenges faced by taxpayers due to glitches in the GST Portal, citing previous cases where similar relief was granted. The Court refrained from delving into whether the Petitioner actually faced difficulties, focusing on the substantial transitional credit at stake and the acknowledged portal glitches.

3. The Court directed the Respondent to either re-open the Portal for electronic filing of the form or allow manual filing by a specified date. The Court emphasized expeditious processing of the Petitioner's claims in accordance with the law. The judgment highlighted the evolving nature of the GST system and the need to address technical issues promptly to ensure smooth compliance for taxpayers.