2022 (8) TMI 590 - HC - GST

Direction to GST Network to open the common portal to file/rectify TRAN-1 and TRAN-2 for a period of two months - HELD THAT - Since all the Petitioners can avail of this window, Petitions stand disposed.

Summary

Issues:
1. Opening of the common portal by GST Network for filing/rectifying TRAN-1 and TRAN-2.
2. Directions regarding availing Transitional Credit by private parties.
3. Verification process by concerned officers for Transitional Credit claims.
4. Reflection of allowed Transitional credit in the Electronic Credit Ledger.
5. Issuance of appropriate guidelines by GST Council for scrutinizing claims.

Analysis:

1. The High Court referred to an order by the Hon'ble Apex Court directing the GST Network to open the common portal for filing/rectifying TRAN-1 and TRAN-2 for a two-month period from September 1, 2022, to October 31, 2022. This directive aimed to enable private parties to avail Transitional Credit, as per the judgment in Petition(s) for Special Leave to Appeal.

2. The judgment further outlined specific directions for the process of availing Transitional Credit. It mandated the GST Network to ensure no technical glitches during the specified period. Additionally, any aggrieved registered assessee was directed to file or revise the relevant form, irrespective of previous writ petitions or decisions by the Information Technology Grievance Redressal Committee (ITGRC).

3. Concerned officers were given 90 days post-verification to assess the veracity of Transitional Credit claims and pass appropriate orders. This verification process was to be conducted on merit, granting reasonable opportunities to the parties involved. The judgment emphasized the importance of accuracy and due diligence in handling Transitional Credit claims.

4. Once Transitional Credit claims were verified and deemed valid, the allowed credit was to be reflected in the Electronic Credit Ledger. This step ensured transparency and accountability in the process of availing and utilizing Transitional Credit, aligning with GST regulations and compliance requirements.

5. Lastly, the judgment highlighted the possibility of the GST Council issuing guidelines to field formations for scrutinizing claims effectively. This proactive measure aimed to streamline the verification process, enhance consistency in decision-making, and promote compliance with GST laws and regulations. Overall, the judgment provided a comprehensive framework for facilitating the availing of Transitional Credit by private parties while ensuring procedural integrity and compliance with legal standards.