2020 (7) TMI 547 - HC - GST

Transition of credit available under the VAT scheme to the GST portal - credit generated on the basis of incorrect ID, thereafter new registration granted - Section 139 of the PGST Act - HELD THAT - The appropriate authority is directed to issue the necessary positive recommendations for migration/transition of credit available in the account of the R2 within a period of four (4) weeks from date of receipt of a copy of this order and R2 will, in turn and within four weeks from receipt thereof, issue necessary intimation to the petitioner permitting it to access the portal and upload the forms. Permission to deposit tax, penalty and interest u/s 50 of the PGST Act - HELD THAT - Such a prayer is premature, since no assessment has been made in the present case. The petitioner may canvass the same, if so inclined, at the time of assessment and such prayer, if and when put forth, shall be considered by the Authorities in accordance with law. Petition disposed off.

Summary

Issues:
1. Migration of tax credit from VAT scheme to GST portal under PGST Act.
2. Failure to receive provisional user ID and password for GST portal.
3. Claiming credit earned under incorrect ID.
4. Request for user name and password for migration process.
5. Writ petition seeking mandamus for issuance of user name and password.
6. Response from Commercial Tax Authorities admitting the facts.
7. Human error acknowledged by Additional Government Pleader.
8. Agreement to permit access to GST portal and avail earned credit.
9. Direction for positive recommendations for migration of credit.
10. Premature prayer for depositing tax, penalty, and interest under PGST Act.

Analysis:
1. The petitioner, a manufacturer of Insoles, sought to transition existing tax credit from the VAT scheme to the GST portal under the PGST Act. However, due to the non-receipt of a provisional user ID and password from GSTN, the petitioner used an incorrect ID to conduct business and earn credit during a specific period.

2. Subsequently, the petitioner applied for new registration and filed returns seeking to claim the earned input tax credit unsuccessfully. Multiple requests were made to the authorities for the user name and password required for the migration process, leading to the filing of a writ petition seeking a mandamus for the issuance of the necessary credentials.

3. The Commercial Tax Authorities admitted the facts presented by the petitioner, with the Additional Government Pleader acknowledging the situation as a simple human error. The Panel Counsel for the respondent agreed that positive recommendations from the authorities would allow the petitioner to access the portal, upload forms, and avail the earned credit.

4. The court directed the appropriate authority to issue positive recommendations for the migration of credit within a specified timeframe. The petitioner was granted permission to access the portal and upload forms once the necessary intimation was received. However, the prayer for depositing tax, penalty, and interest under the PGST Act was deemed premature, with the court advising the petitioner to raise such issues during assessment for consideration in accordance with the law.

5. Consequently, the writ petition was disposed of with no costs, emphasizing the need for procedural compliance in transitioning tax credits and addressing errors in a timely and appropriate manner under the PGST Act.