GST Cir 182/2022 for Transitional Credit Claim Verification

CBIC has provided the policies for the verification of the GST transitional credit claims and the specified assessee would not be allowed to furnish the amended returns to claim the credit.

When Goods and Services Tax (GST) was incorporated on July 1, 2017, the assessee was permitted to file Form TRAN-1 and TRAN 2 and claim the credit on the taxes filed for the pre-GST regime.

The Supreme Court had asked the revenue department to open a GST portal for 2 months to allow the assessee to file or revise Form TRAN-1 and TRAN-2. 

As per that the GST portal has been opened on the date 1st October for the two months for filing the amended claim form.

The same sort of claims would get validated via tax officers in a period of 90 days that gets ends on the date 28th Feb 2023.

The Central Board of Indirect Taxes and Customs (CBIC) would have provided the policies drawing the essential regulations to find out the eligibility of the claim of these credits.

The court has permitted the filing of TRAN 1/ TRAN 2 or revising the forms that the petitioner has furnished and does not permit the petitioner to furnish the amended returns beneath the current statute. 

Tax expert stated that the assessee would not be allowed to furnish the amended returns beneath the current statute and when there would be no revision from the earlier filed TRAN-1/TRAN-2 then these claims would be accountable for the denial through the tax officer. 

“Guidelines also elaborate on the modalities of coordination between central tax authorities and state authorities, clarifying that all communications shall be made with the use of DIN (Document Identification Number),” a tax expert stated. 

Tax expert, “The GST Policy wing has laid down the manner of verification of TRAN 1/ 2 filed by assessees pursuant to Supreme Court order in case of Filco Trade Centre Pvt Ltd while clarifying that the SC has kept questions of law open. The businesses should peruse the same to be better placed to revert to queries raised by authorities.”