GSTN Reopens TRAN 1/ 2 Forms: Advisory on Last Chance to Claim Transitional Credit

Hon’ble Supreme Court of India ruled that the taxpayers shall be given a one-time opportunity to claim transitional Input Tax Credit (ITC). To make this happen, the Court directed the department to re-open the facility to file TRAN 1/ 2 forms.

Following the Apex Court’s directive, the Goods and Services Tax (GST) portal re-opened the facility to file or revise earlier filed TRAN 1/ 2. The taxpayers can file these forms between 1st October 2022 till 30th November 2022, according to the Apex court instructions.

The taxpayers shall note that the process flow for TRAN filing differs from the filing process in FY 2017-18, as the GST portal enhanced the filing process and user interface. So, to make things clear, the portal released an advisory on the re-opening of TRAN 1/ 2 to claim transitional ITC.

Let’s go through the important points to keep in mind while freshly filing or revising already filed TRAN forms:

  • The TRAN forms are enabled, and the default filing status of forms is set as “Not Filed”. 
  • This status means that the TRAN forms are not filed between 1st October 2022 to 30th November 2022.
  • Those who had successfully filed TRAN 1/ 2 earlier and do not wish to make any revisions are not required to file/ revise TRAN forms again.
  • This option of filing or revising TRAN forms is a one-time opportunity.
  • Hence, you should take utmost care and precaution while filing or revising TRAN 1/ 2 and thoroughly check the details before filing a claim on the common portal. 
  • You are advised to save the added records on each table before navigating to other tables.
  • Also, you should save the details periodically, download the data and cross-verify downloaded data with the added records/uploads before submitting the forms.
  • Please note that you can add, modify/edit, or delete any record in any of the tables before clicking on the ‘Submit’ button.
  • However, once the ‘Submit’ button is clicked, the entries will be locked, and you can not take further action.
  • Suppose you have already filed the TRAN forms and planning to revise them. In that case, you should file the complete form with all the required details but not the difference of values between the originally claimed ITC and the ITC being claimed now.
  • You can use the preview functionality to download the TRAN forms in excel and ensure the correctness of the details filled before submission.
  • Once you’ve submitted the form, you must file the TRAN forms using either ‘File with DSC’ with Digital Signature Certificate (DSC) or ‘File with EVC’ options with an EVC. Otherwise, the submitted forms would be considered as not filed.
  • Also, after completion of filing TRAN forms, make sure to upload the supporting documents in the separate facility under the ‘Upload Documents’ tab. The taxpayer can find this tab by navigating Services > Returns > Transition Forms > Upload documents.
  • The transitional ITC shall reflect in the credit ledger only post verification of the jurisdictional tax officer.
  • The portal is working on providing the option to download earlier filed TRAN-1 forms to ease the process further.

For more information on filing TRAN 1/TRAN 2 forms, please refer to our article here.

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

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