The Kerala High Court, while considering a writ petition, directed the GST authorities to allow the claim for input tax credit to the petitioner for the period of migration to the new tax regime if the filing of GST TRAN-1 could not be done for reasons not attributable to the petitioner.
The petitioner migrated to the new Goods and Services Tax (GST) regime from the old VAT regime. The petitioner, to use the input tax credit at the time of migration, had to upload GST TRAN-1 in time. However, he could not file the same due to glitches in the GST portal and therefore, approached the High Court for a direction to enable him to take credit of the available input tax.
Before the Court, the counsel for the Revenue relied on the circular issued by Central Board of Indirect Taxes and Customs, Circular No.39/13/2018- GST dated 03.04.2018 and made a submission that a special cell has been created to resolve the nature of grievance as has been raised by the petitioner in the present petition. It was also contended on behalf of the Revenue that earlier also, the Court has directed the petitioners to approach the Nodal Officer of GST Grievance Cell to resolve the similar issue.
Accepting the above contention, Justice Dama Seshadri Naidu directed the Nodal Officer to look into the issue and facilitate the petitioners in filing GST TRAN-1 without reference to the time-frame.
Before concluding, the Court added that “To set a time frame, I may also observe that if the petitioner applies within two weeks after receiving this judgment, the Nodal Officer will consider and take steps within a week thereafter. If the uploading of GST TRAN-1 is not possible for reasons not attributable to the petitioner, the authority will also enable him to take credit of the input tax available at the time of Migration.”
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