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GST Network will provide special window facility to all the assesses to file their claim for transitional credit from October 01. It will be available for 60 days.
“Supreme Court, while hearing an application from GSTN, has allowed the extension of 4 weeks-time to comply with their order dated July 22, 2022. Accordingly, GSTN would open the common portal for filing transitional credit through Tran 1 and Tran 2 w.e.f., October 01, 2022,” GST portal said in its posting.
About Trans credit
Trans credit or Transitional credit refers to use of tax credit accumulated up to June 30, 2017, that is, the last day of erstwhile central excise and service tax regime. Post-introduction of Goods & Services Tax (GST), special provision was made for credit accumulated under VAT, excise duty, or service tax to be transited to GST. However, there were some conditions, such as the credit will be available only if returns for the last six months were filed in the previous regime (VAT, excise, and service tax returns had been filed).
Tran 1 Form needs to be filed by registered persons under GST, may be registered or unregistered under the old regime. Tran 2 Form needs to be filed by a registered persons under GST but unregistered or under old regime or a dealer or trader who does not have documents of duty paid.
Supreme court’s orders
Because of technical glitches and some other reasons, many assesses could not avail the transitional credit, and the matter reached courts and finally, the Supreme Court. On July 22, a division bench of the apex court directed the portal to be kept open between September 01 and October 31 for all registered assesses to upload TRAN 1 & TRAN 2 forms. It was also said that this benefit has been extended to all GST registered assessees, irrespective of whether they had filed writ petitions or their claims have been rejected on the ground that there are no technical glitches. Field formations, all over India, are given 90 days-time to verify the veracity of the claims and pass orders on merits in accordance with the law, after granting reasonable opportunity.
Last month, the Ministry approached the Supreme Court for an extension of time to open a special window for filing transitional credit claim by 30 days. It submitted that various dates of every month are crucial for return filing and tax collection in the GST system. For example, 7-11 of every month is peak filing period for form GSTR-1. Similarly, 12-14 of every month is GSTR-2B generation period, which is the facility for the taxpayer to see how much credit is available to him/her.
Further, 15-20 of every month is the peak filing period for GSTR-3B; 90-95 lakh returns are filed, and during these days, about 90 per cent of monthly revenue of around ₹1.1-lakh crore is deposited by taxpayers. In quarterly filing months, this peak filing period extends up to 24th due to separate date of return filing for them. In view of the criticality of revenue collection, IT changes are avoided from 7-24 of every month. This leaves GSTN with a deployment window from the 25th of a month to the 6th of the next month in every cycle. With these arguments, the Centre prayed for extension for which the apex court agreed.
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