CBIC Releases Circular on Re-opening of Transitional ITC Claims Window

Following the Supreme Court’s order, the Central Board of Indirect Taxes and Customs (CBIC) has released a circular on re-opening the window for claiming transitional Input Tax Credit (ITC) by filing TRAN-1/ TRAN-2 on the Goods and Services Tax (GST) portal.

The circular states that 

  • You can either file fresh GST TRAN-1/ TRAN-2 or revise the earlier filed form.
  • The opportunity to file or revise will be available between 01st October 2022 and 30th November 2022.
  • If you are revising the filed TRAN-1/ TRAN-2, you can download the earlier filed TRAN-1/ TRAN-2 from the portal.
  • You must upload Annexure ‘A’ along with TRAN-1/ TRAN-2 forms on the GST portal. 
  • If you are ITC based on the Credit Transfer Document (CTD) in table 7A of TRAN-1 shall also TRANS-3 PDF copy as per the Notification No. 21/2017-CE(NT) dated 30.06.2017.
  • You can not claim the transitional credit related to C-Forms, F-Forms and H/I-Forms, which have been issued after 27the December 2017, i.e., after the due date prescribed for submitting the TRAN-1.
  • If you are filing TRAN-2, you can file the entire claim in one consolidated TRAN-2 instead of filing the claim tax period-wise. In these cases, you shall mention the last month of the consolidated tax period in the ‘Tax Period’ column.
  • This facility is only a one-time opportunity for taxpayers, and no further revision will be allowed once the filing is completed. 
  • Hence, you must be very careful while filing or revising the transitional ITC forms.
  • You can verify through a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) on the GST portal.
  • If you have already filed TRAN-1/ TRAN-2 earlier and do not want to make revisions, you are not required to file/ revise these forms again.
  • You must submit a self-certified copy of filed TRAN-1/ TRAN-2, along with Annexure ‘A’ and TRANS-3, as applicable, to the jurisdictional tax officer within seven days of filing.
  • Also, suppose your transitional ITC has been rejected either fully or partially based on the earlier filed TRAN-1/ TRAN-2. In that case, you can prefer to file an appeal against such order or pursue alternative remedies available as per law. 
  • In cases where the adjudication/ appeal proceedings are pending, approaching the respective adjudication/ appeal authority would give you the resolution. However, filing a fresh TRAN-1/ TRAN-2 to re-claim the transitional ITC is not the appropriate course of action.
  • The filed or revised TRAN-1/ TRAN-2 are subjected to verification by the concerned tax officers. 
  • You might need to submit the required documents to support your transitional ITC credit claims.
  • The jurisdictional tax officer will pass an appropriate order based on merits after granting an appropriate reasonable opportunity of being heard.
  • The transitional ITC allowed would be reflected in your Electronic Credit Ledger (ECL).

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in

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