Big relief for businesses as the Supreme Court ruling opens a window for taxpayers to claim pre-GST credits. Recently, Supreme Court passed the landmark decision in the case of M/S Filco Trade Centre Pvt. Ltd., wherein the court allowed the taxpayer to claim accumulated ITC accrued in the pre-GST regime. In case the taxpayer has missed or hasn’t availed of the TRAN – 1 and TRAN – 2 credit for any of the reasons listed below, now he is eligible to avail of the same. GST portal to open the facility for a period of 60 days from the period 01.09.2022 to 31.10.2022 for eligible taxpayers to file the respective forms. It has been ordered that GSTN needs make sure that there are no technical glitches during the said time period.

Post the completion of 60 days period, GST officers need to verify the veracity of the claim/transitional credit and pass appropriate orders on merits within 90 days. GST authorities can also issue the appropriate guidelines for scrutinizing the claims. This will help the thousands of taxpayers who were struggling to get the benefit of Pre-GST credit stuck due to the introduction of GST.

Now the most important question that arises is, Who is eligible to file this form?

From the above decision, it can be inferred that any aggrieved taxpayer can file the form for availing the credit irrespective of whether the taxpayer has filed the Writ petition before the Hon’ble High Court or whether the case of the taxpayer has been decided by  IT Grievance Redressal Committee (ITGRC).

Though this judgment is silent about the aggrieved person, we believe that the following can be regarded as the aggrieved person to be eligible to file the TRAN forms: 

• A taxpayer who missed to file or did not even attempt to file TRAN – 1 and TRAN – 2 within the prescribed time period is now eligible for credit;
• A taxpayer whose credits were duly transitioned can re-assess any missed amounts that can now be transitioned;

Our Comments: The same is litigation and if the same gets covered, then the principle of unjust enrichment has to be satisfied. For the same, it is important that even the authorities will come for approval of the same, however, the same has to satisfy the test of the principle of unjust enrichment before any assessee opts for filing of the same at the portal.

• Wherein the company has incorrectly filed the claim and the same has been rejected and adjudication is pending before the adjudicating authority or any high court against the rejection order, then, the company can file the amendment.
• A taxpayer who couldn’t file TRAN 1/2 because of technical glitches on the portal;
• A taxpayer whose claim has been rejected by ITGRC on the ground that there are no technical glitches while filing the application on the portal

Conclusion: We expect that the detailed guidelines specifying the eligibility and SOPs shall be issued by the Authorities for more clarification. Also, the Company needs to evaluate the position with regard to the specific facts involved on a case-to-case basis, as the window period is very limited.

Are you struggling with GST Refund? Must Read GST Refund Issues.