Facts of the Case

The petitioner, M/s. R.P.M. Distributors, approached the Jharkhand High Court seeking permission to file Form GST TRAN-1 for carrying forward eligible transitional Input Tax Credit (ITC) from the pre-GST regime into the GST regime. The petitioner’s earlier representation for allowing the filing of TRAN-1 had been rejected by the Deputy Commissioner of State Tax through an order dated 05.01.2021.

During the pendency of the writ petition, the Hon’ble Supreme Court delivered its judgment in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, directing GSTN to reopen the GST portal for filing or revising TRAN-1 and TRAN-2 for all eligible registered taxpayers.

Issues Involved

  1. Whether the petitioner should be permitted to file Form GST TRAN-1 despite the earlier rejection of its representation.
  2. Whether the Supreme Court's directions in Filco Trade Centre Pvt. Ltd. would extend the benefit of reopening the GST portal to the petitioner.
  3. Whether eligible taxpayers who could not file TRAN-1 earlier due to procedural or technical reasons should be allowed to claim transitional credit.

Petitioner's Arguments

  • The petitioner submitted that the Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another had directed GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2.
  • It was argued that the benefit of the Supreme Court's directions was available irrespective of whether a taxpayer had already approached the High Court or whether the matter had been considered by the Information Technology Grievance Redressal Committee (ITGRC).
  • Since the writ petition had been filed before the Supreme Court's decision, the petitioner requested permission to avail the special window provided for filing TRAN-1.

Respondents' Arguments

  • Counsel appearing for the Central GST Authorities, GSTN, and the State of Jharkhand fairly conceded that the petitioner's case was fully covered by the directions issued by the Supreme Court in Filco Trade Centre Pvt. Ltd.
  • Accordingly, the respondents did not dispute that the petitioner should be allowed to avail the reopening of the GST portal.

Court Order / Findings

The Jharkhand High Court observed that the Supreme Court had already directed GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 and had subsequently extended the period for filing.

The High Court held that the petitioner's case squarely fell within the scope of the Supreme Court's directions. Accordingly, the petitioner was permitted to submit Form GST TRAN-1 during the reopened portal window, and the claim for transitional credit would thereafter be examined in accordance with the procedure prescribed by the Supreme Court.

The writ petition was disposed of in terms of the Supreme Court's directions.

Important Clarification

  • The benefit of reopening the GST portal for filing or revising TRAN-1 applies even if the taxpayer had already filed a writ petition before the High Court.
  • Eligible taxpayers are entitled to avail the special window provided pursuant to the Supreme Court's decision in Filco Trade Centre Pvt. Ltd.
  • The reopening of the portal does not automatically grant transitional credit; the claim remains subject to verification by the proper authorities.
  • After verification, admissible transitional credit is required to be reflected in the taxpayer's Electronic Credit Ledger.

Section Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Relevant provisions relating to Form GST TRAN-1 and Transitional Input Tax Credit under the CGST Rules.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785395361_2336compressed.pdf

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