Re-Opening of GST Transitional Credit: Benefit of Supreme Court Direction available to 'Any Aggrieved Registered Assessee', Madras HC Clarifies [Read Order]

In a recent ruling, the Madras High Court has clarified that the benefit of the Supreme Court decision directing the Government to open the GST portal for taxpayers who wants to avail transitional credit, is available to 'any aggrieved registered assessee'

The order was pronounced by Justice Anita Sumanth in the light of the recent judgment of the Supreme Court in the case of Union of India and another V. Filco Trade Centre Pvt. Ltd. and another.

The petitioner, M/s.Proventus Life Sciences Pvt. Ltd. contended that the petitioner is inclined to avail the benefit extended to the assessees in the aforesaid order. An endorsement is also made to the aforesaid effect by the department.

In the above case, the Apex Court has held that;

1.Goods and Service Tax Network (GSTN) is directed to open common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. w.e.f. 01.09.2022 to 31.10.2022.

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 glitch 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.'

Allowing the writ petition, the Court held that “In specific, direction No.2 permits 'any aggrieved registered assessee' to file a form seeking Transitional credit or revision thereof.”

To Read the full text of the Order CLICK HERE

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