The Commissioner of Commercial Taxes, Tamil Nadu has issued guidelines for verification of Goods and Services Tax (GST) transitional credit filed via TRAN-1/TRAN-2.
The guidelines for filing/revising TRAN-1/TRAN-2 were issued earlier pursuant to orders dated 22/07/2022 and 02/09/2022 of the Supreme Court of India in the case of Union of India Vs. Filco Trade Centre Private Limited.
The Central Board of Indirect Taxes and Customs (CBIC) also issued a circular earlier with guidelines and a checklist for verification of transitional credit from the legacy regime to the Goods and Services Tax (GST) regime, pursuant to the directions of the Supreme Court in Union of India vs. Filco Trade Centre Pvt. Ltd.
For the proper implementation of the same, the current circular is issued.
To ensure uniformity in the implementation of the directions of the Supreme Court, across field offices, the Commissioner, in exercise of powers conferred by Section 168 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act), issued the guidelines for verifying the Transitional Credit.
The directions in the newly issued Circular No. 19/2022 dated 14.12.2022 are as follows:
The jurisdictional proper officers can access the TRAN-1 / TRAN-2 filed/revised by the applicant on their back office systems.
Further, a self certified downloaded copy of TRAN-1 / TRAN-2 filed/revised by the applicant shall also be made available to the jurisdictional proper officer by the said applicant, Filco Trade Centre Pvt. Ltd.
“The verification of the transitional credit shall be conducted by the jurisdictional proper 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-I / TRAN-2 filed/revised by the applicant under the administrative control of the state tax authorities, such verification and issuance of order shall be done by the jurisdictional officer of state tax, whereas in respect of TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the central tax authorities, the same shall be done by the jurisdictional officer of central tax.
The jurisdictional tax officer shall start the verification process immediately on availability of TRAN-I / TRAN-2 filed/revised by the applicant on the back office system or on receipt of self-certified downloaded copy of the same from the applicant, whichever is earlier.
“It is needless to mention that principles of natural justice shall be followed in the process of passing the order relating to allowance or disallowance of the Transitional Credit.”, further observed the circular.
It was further clarified in the circular that, “Where the amount credited to the electronic credit ledger pursuant to the originally filed TRAN-I / TRAN-2 exceeds the amount of credit admissible in terms of the revised TRAN-I / TRAN-2 filed by the applicant, such excess credit is liable to be demanded and recovered from the applicant, along with interest and penalty, in accordance with the provisions of Chapter XV of the TNGST Act and the rules made thereunder.
Additionally, GSTN will also issue a separate advisory for entering the details on the portal by the tax officers, the circular stated.
“In any case, such order shall be passed within a period of 90 days from 01.12.2022 i.e. upto 28.02.2023”, the circular further directed.
It was also mandated that, “Where any communication is required to be made by the State Jurisdictional proper officer with the applicant for the purpose of verification of TRAN-I/ TRAN-2, the same should be made through the portal.”
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