Facts of the Case

The petitioner, Kishan Gupta, approached the Jharkhand High Court seeking a direction to the GST authorities to permit the filing of Form GST TRAN-1 for carrying forward eligible transitional input tax credit from the pre-GST regime into the GST regime.

The petitioner’s representation requesting permission to file TRAN-1 had been rejected by the Deputy Commissioner of State Tax, Ranchi, through an order dated 05.01.2021. Aggrieved by the rejection, the petitioner filed the present writ petition before the High Court.

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 common portal for filing or revising TRAN-1 and TRAN-2 forms for all eligible taxpayers.

Issues Involved

  1. Whether the petitioner should be permitted to file Form GST TRAN-1 despite the earlier rejection by the tax authorities.
  2. Whether the petitioner was entitled to the benefit of the window period opened by the Supreme Court in the Filco Trade Centre judgment.
  3. Whether the reopening of the GST portal by the Supreme Court applied even to taxpayers whose writ petitions were already pending before High Courts.

Petitioner’s Arguments

  • The petitioner submitted that the rejection order dated 05.01.2021 should not deprive him of the benefit subsequently granted by the Supreme Court.
  • Reliance was placed upon the Supreme Court judgment in Union of India & Another vs. Filco Trade Centre Pvt. Ltd. & Another, wherein all aggrieved registered taxpayers were permitted to file or revise TRAN-1 and TRAN-2 forms irrespective of:
    • Whether they had filed writ petitions before the High Court; or
    • Whether their cases had been decided by the Information Technology Grievance Redressal Committee (ITGRC).
  • It was further submitted that the Supreme Court had subsequently extended the reopening period of the GST common portal, thereby enabling eligible taxpayers to file TRAN-1 within the extended window.
  • Since the petitioner’s case squarely fell within the scope of the Supreme Court directions, he was entitled to file TRAN-1 during the reopened portal period.

Respondent’s Arguments

  • Counsel appearing for the CGST, GSTN and the State of Jharkhand fairly submitted that the petitioner’s case was fully covered by the directions issued by the Hon’ble Supreme Court in Filco Trade Centre Pvt. Ltd.
  • They agreed that the petitioner could avail the benefit of the reopening of the GST common portal in accordance with the Supreme Court’s judgment.

Court Order / Findings

The Jharkhand High Court observed that:

  • The Supreme Court had directed GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms.
  • The benefit was available to all aggrieved registered taxpayers, irrespective of whether writ petitions had been filed or whether ITGRC had already decided their cases.
  • The Supreme Court had also extended the reopening period of the portal by a further four weeks, thereby allowing eligible taxpayers additional time to submit their claims.
  • Since the petitioner’s case was squarely covered by the Supreme Court directions, the petitioner was entitled to submit Form GST TRAN-1 within the window period prescribed by the Apex Court.
  • Accordingly, the writ petition was disposed of with liberty to the petitioner to avail the benefit of the Supreme Court directions.

Important Clarification

  • The judgment reiterates that the benefit of reopening the GST portal for transitional credit was available to all eligible taxpayers, irrespective of pending litigation or earlier rejection of claims.
  • The High Court merely implemented the binding directions of the Supreme Court in Filco Trade Centre, ensuring that eligible taxpayers could avail the special window for filing TRAN-1.
  • The verification of transitional credit claims would thereafter be undertaken by the concerned tax authorities in accordance with the Supreme Court's directions before allowing credit into the Electronic Credit Ledger.

Sections / Subject Involved

  • Transitional Input Tax Credit under GST
  • Form GST TRAN-1
  • Form GST TRAN-2
  • Electronic Credit Ledger
  • Transitional Credit from Pre-GST to GST Regime
  • GST Common Portal Reopening
  • Verification of Transitional Credit Claims

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785395448_2342compressed.pdf

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