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TMI BlogGuidelines for verifying the Transitional Credit in light of the order of the honourable Supreme Court in the Union of India v. Filco Trade Centre Pvt. Ltd., SLP(C) Nos. 32709-32710/2018, order dated July 22, 2022 and September 2, 2022X X X X Extracts X X X X X X X X Extracts X X X X ..... gh TRAN-1 and TRAN-2 for two months, i. e., with effect from September 1, 2022 to October 31, 2022. 2. Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC). 3. GSTN has to ensure that there are no technical glitches during the said time. 4. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned. 5. Thereafter, the allowed transitional credit is to be reflected in the electronic credit ledger. 6. If required GST council may also issue appropriate guidelines to the field formations in scrutinizing the claims. The special leave petitions are disposed of accordingly. Pending applications, if any, also stand disposed of." 1.2. Subsequently in Miscellaneous Application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The jurisdictional tax officers can access the TRAN-1/TRAN-2 filed/revised by the applicant on their back office systems (which is the CBIC-AIO portal for the Central tax officers, the respective State portal for MODEL-1 States and BO portal for MODEL 2 States). Further, a self-certified downloaded copy of TRAN-1/TRAN-2 filed/revised by the applicant shall also be made available to the jurisdictional tax officer by the said applicant as mentioned in para 4.5 of this Commissioner Circular No. 129/2022-GST, dated September 16, 2022 . 5.2 The verification of the transitional credit shall be conducted by the jurisdictional tax officer who will pass an appropriate order regarding the veracity of the claim filed by the applicant, based on all the facts and the provisions of the law. In respect of TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the Central tax authorities, such verification and issuance of order shall be done by the jurisdictional officer of Central tax, whereas in respect of TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the State tax authorities, the same shall be done by the jurisdictional officer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nodal officer of state tax as well as central tax referred in Para 6.1 below through his official email 10 or physically. Similar action, as above, shall also be taken by the jurisdictional central tax officers in cases where the applicant is under the jurisdiction of central tax officer and where the transitional credit claimed has component of State tax also. 5.3.3 The jurisdictional tax officer shall, in parallel, continue the verification of the remaining portion of the transitional credit at his end. 5.3.4 The jurisdictional tax officer shall also receive the request for verification of transitional credit claimed under the SGST Act, from the counterpart central jurisdictional officers. The jurisdictional officer shall verify the transitional credit claimed under the SGST. head pertaining to taxable persons originating in his office as well as received from the counterpart central jurisdictional officers, by referring to the guidelines detailed in annexure I of this circular. While conducting the verification, the officer must also check whether any adjudication or appeal proceedings in Form GST TRAN-1/TRAN-2 related matter are pending/concluded against the applicant. In su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the jurisdictional tax officer finds that the transitional credit claimed by the applicant is partly or wholly inadmissible as per the provisions of the Act and the rules thereof, then a notice shall be issued by the jurisdictional tax officer to the applicant preferably within a period of seven days from the receipt of report from the counterpart officer, seeking explanation of the applicant as to why the said credit claimed by him should not be denied wholly/partly, as the case may be. The applicant shall also be provided an opportunity of personal hearing by the jurisdictional tax officer in such cases. If required, the jurisdictional tax officer may seek comments of the counterpart officer on the submissions made by the applicant in so far as the said submission relates to the tax (Central or State) being administered by such counterpart officer. 5.3.8 After considering the facts of the case, including verification report received from the counterpart officer, submissions made by the applicant and the comments, if any, of the counterpart officer on the same, the jurisdictional tax officer shall proceed to pass a reasoned order, preferably within a period of fifteen days fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexure-I Guidance note for verification of Assam GST transitional credit claimed by the applicant in TRAN-1/TRAN-2 1. Description of entries in TRAN-1 table (i) In the FORM GST TRAN-I, there are details of statutory forms received for which credit is being carried forward during the period from 1st April 2015 to 30th June 2017 in Table 5(b) and Table 5(c) in the return filed under existing laws. (ii) In the FORM GST TRAN-I, all the entries relating to SGST credit which is posted in the electronic credit ledger are briefly described below. It is advised that the full text of law be referred for better understanding of the issue. Sl. No. Table No. in TRAN-1 Provision in CGST Act Indicative list of nature of Credit 1. Table 5(c) 140(1) and 140(4)(a) This table captures detail of the Cenvat credit carried forward in the return (ER-1/2/3 or ST-3) relating to the period ending with June 30, 2017, subject to conditions specified in section 140(1) of the Assam GST Act, by the registered persons. 2. Column 10 of table 6(b) 140(2) This table captures details of unavailed credit of capital goods in the pre-GST era. capital goods credit was allowed to be availed in two instalme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al credit should be less than amount shown in Sl. 13 (t) of Part-I in Form-14 (VAT Return) of June-2017. b. Verify whether the registered person has filed returns for the previous 6 months. c. Whether the input tax credit claimed as transitional credit is an admissible input-tax credit under the GST Act. d. Whether the amount claimed under TRAN-I is already refunded under the VAT Act out of Sl. 13(t) of Part-I of Form 14 (VAT Return) during any re-assessment proceedings. e. Check for the CST Assessment order for the tax periods April-2017 to June-2017 and find out whether there are any arrears of CST Tax, if yes subtract such arrears amount from the claim in Sl. 13(t) and the balance transitional credit claimed after such deduction shall be allowed as transitional credit. Further, this rejected transitional credit shall be intimated to the jurisdictional tax officer to reconcile the arrears amount and make suitable adjustments to the CST arrears with the amount in balance. The same shall be flagged to the jurisdictional tax officer for recovery of arrears from the input tax credit of GST. The other method that can be followed is to allow the transitional credit claimed on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices during the earlier period and whether any revised return has been filed to claim this input-tax credit. Also check whether the claimant has filed a statement in respect of this input-tax credit. 5.1.5. COT to GST : Check whether the person was under composition scheme under the VAT Law and is under regular scheme under the CST Law and has stock of inputs or semi-finished or finished goods as on July 1, 2017 and he is eligible for input tax credit under the GST Law and has the tax paid documents with him which is dated after July 1, 2017. In such cases, calculate the credit and verify if any excess claim is made, the same shall be restricted by passing order of demand under section 73 or 74 of the Assam GST Act, 2017. 6.1 Check for Table 11 : Check whether the taxable person is entitled to take SGST credit, the VAT paid under the existing law to the extent of supplies made after 1st July,2017 as he would be liable to pay SGST in respect of such supplies. Service tax credit cannot be taken as VAT credit and vice versa. General check : Check that credit which is being claimed through TRAN 1/TRAN-2 is not taken through return in FORM GSTR-3B. This can lead to double credit ..... 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