Following the orders of Bombay and Allahabad High Courts criticizing the Government for poor IT infrastructure for Goods and Services Tax Network (GSTN), the Government has decided to set up a new mechanism for grievance redressal to taxpayers.
The Government has further decided to allow individual firms to continue to claim transitional credits even though an earlier deadline was December 27.
Last week, a two-judge bench of the Bombay High Court, in a petition filed by M/s Abicor and Binzel Technoweld Pvt. Ltd asked the Government to resolve the technical glitches in the Goods and Services Tax Network (GSTN) soon. While highlighting the need for a grievance redressal system, the bench also opined that the new indirect tax regime is not tax-friendly.
“The regime is not tax-friendly. We hope and trust that those in charge of implementation and administration of this law will at least now wake up and put in place the requisite mechanism. This is necessary to preserve the image, prestige, and reputation of this country, particularly when we are inviting and welcoming foreign investment in the State and the country. We hope and trust that such petitions are rarity and the Court will not be called upon to administer the implementation of the law, leave alone monitoring and supervising the working of the individual officials, howsoever high ranking he may be,” the bench said.
The grievance redressal mechanism will also ensure that individual cases do not end up in court, an official said. “We will allow the petitioners access to the GSTN system so that they can claim transitional credit. If there are similar cases with a genuine grievance, they will also be allowed to file the claim but TRAN-1 form will not be opened for all taxpayers,” he added.
Earlier this month, the Allahabad High Court had directed the Government to re-open the Goods and Services Portal in order to enable the taxpayer to file TRAN-1 or process the petitioner’s application manually.
Recently, the Government has launched a new self-help portal, http://selfservice.gstsystem.in for traders In order to address the queries related to the Goods and Services Tax.
