The Delhi High Court directed to refund of the goods and service tax ( GST ) amount credited as the automatic generation of non-migrated GST numbers due to a technical error. The court directed the respondent and the Central Board of Indirect Taxes and Customs to look into the issue of the automatic generation of non-migrated GST numbers and in case such a technical error is noticed in the portal, rectification steps be taken for identifying such non-migrated numbers.
BCC Developers and Promoters Pvt Ltd, the petitioner seeks a direction from the respondent to refund the GST in the sum of Rs. 16,19,838/- to the petitioner which has been deposited against the non-migrated GST.
The petitioner was earlier registered during the Service Tax Regime and possessed a VAT number as well as a service tax number. When the GST Regime came into play, the earlier registration of VAT and Service Tax were to be migrated into a GST number.
Since one individual could not have two GST numbers, the petitioner opted for migration of only one number i.e. its VAT registration and was allotted a GST number. As per the petitioner, the petitioner was not aware that the service tax registration number had also been migrated without his knowledge and a GST number issued (non-migrated GST number).
As per the petitioner, the petitioner, after such migration, has only been using the migrated GST number and was not even aware of the non-migrated GST number. Petitioner became aware of the nonmigrated GST number when one of the clients of the petitioner claimed to have deposited the GST credit and the same was not reflected in the migrated GST number.
As per the petitioner, on a search being conducted on the portal, the petitioner became aware of the non-migrated number and also found that an amount of Rs. 16,19,838/- was lying to the credit of the petitioner in the non-migrated GST number. Petitioner seeks a refund of the said amount or alternative credit of the said amount to the migrated GST number.
The respondent submitted that there is no provision available in the GST portal for the transfer of credit from one GST number to another. He however concedes that the petitioner did not opt for the migration of the service tax registration and the system automatically created a GST number (i.e. the non migrated GST number). The amount standing to the credit of the non migrated GST number be transferred to the migrated GST number of the petitioner.
Justice Sanjeev Sachdeva and Justice Ravinder Dudeja directed the respondent and the Central Board of Indirect Taxes and Customs to look into the issue of the automatic generation of non-migrated GST numbers and in case such a technical error is noticed in the portal, rectification steps be taken for identifying such non-migrated numbers and cancellation thereof within four weeks.
The Petitioner Mr Rahul Malhotra and Mr Ativ Gupta and the Respondents Mr Aditya Singla with Mr Raghav Bakshi.
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