Special window to file transitional credit under GST to open from 1st October 2022
Dearness allowance

The Goods and Services Tax Network (GSTN) has announced that taxpayers can file their missed transitional credits from 1st October 2022. The development comes a month after the Hon’ble Supreme Court ruled that the GST portal should reopen to allow the filing of transitional credits from the pre-GST regime from 1st September 2022. 

GSTN is the technical body of the GST ecosystem. It had to carry out changes to the system to enforce the SC’s order. However, due to a lack of necessary support during September 2022, the GSTN filed a petition seeking an extension by a month with the SC to implement its order. The petition bears SLP (C) nos. 32709-32710/2018. 

Further, the Centre approached the apex court to allow permission for running the facility for 90 days from October to December 2022 on technical grounds due to the support needed for addressing monthly return filing issues. Hence, the GSTN was allowed to open the government portal facility to file the transitional credit through forms TRAN-1 and TRAN-2 beginning on 1st October 2022.

The Supreme Court passed the initial order after hearing many petitions in July 2022. It ordered the Centre to reopen the facility to allow claims of transitional credit for two months, from 1st September to 31st October 2022. 

The benefit was decided to be opened to all the migrated taxpayers desiring of availing the benefit whether or not they filed petitions. Further, the GSTN had to ensure that no technical glitches arose during this window. Earlier, many petitioners had missed the deadlines on account of technical issues. A 90-day window is available for tax officers to validate the transitional credit claims on merit upon filing the TRAN forms. After that, they can issue the appropriate order according to natural justice by granting the taxpayers an opportunity to hear. Subsequently, if satisfied, they must credit such transitional credit into the taxpayer’s electronic credit ledger.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in

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