Introduction of GST Forms TRAN-1 and TRAN-2
GST law comprises the information provisions to take forward the ITC made via the GST-enrolled individuals in the course prior to the date 1st July 2017. These credits (left-out credits) were taken forward or claimed in the GST forms Tran-1 and Tran-2 [T1 and T2] to be filled on the GST portal ‘before 27.12.2017’. Towards the GST enrolled individuals who can not carry forwards or claim the left credit or who can not precisely carry forward or claim the left out credit needed to be allotted a one-time chance beneath the honourable Supreme Court of India issued orders.
Information:
“In accordance with the above-referred directions of Hon‘ble Supreme Court, vide order dated 22.07.2022 in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018 read with their order in Miscellaneous Application No.1545-1546/2022 in SLP(C) No. 32709-32710/2018 the facility for filing TRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the common portal by an aggrieved registered assessee will be made available by GSTN during the period from 01.10.2022 to 30.11.2022.”
‘Registered Persons’ may not take forward/claimed ‘left out credit/’ correct left out credit prior to 27.12.2017. They might take the opportunity to claim left-out credit which is a one-time opportunity and should not be missed; otherwise, it will have a financial impact. Once ‘Registered Persons’ files T1/T2 or revises the T1/T2 furnished before on the common portal, no additional opportunity to again file or revise T1/T2, thereafter, will be available to them.
Instructions for Revised Filing of TRAN-1 and TRAN-2 Forms
- There may be a concern that Registered individuals do not file declarations in FORM GST TRAN-1/TRAN-2 [T1/T2], now they may now file T1/ T2.
- There might be a condition that they would have before filing GST form for TRAN-1 or TRAN-2, whereas due to any left-out credit in those forms, there is a requirement to modify before furnishing TRAN-1/TRAN-2. In the same case “Registered Person’ shall be enabled to download previously filed T1/T2 from the GST Portal, utility to amend T1/T2 is made available via the GST portal.
- GST portal is currently open towards filling new T1/T2 and revising old T1/T2 w.e.f. 01.10.2022 and will remain open up to 30.11.2022.
Registered Individuals Need to Practice
- To verify if any credit would be due for claiming on the grounds of the Credit Transfer Document (CTD).
- To verify if any credit would be pending for claiming for the same C-Forms, F-Forms, and H/I-Forms which have been allocated prior to the 27th of December, 2017.
- Indeed fill and submit Annexure A to the jurisdictional tax officer, once T1/T2 would get furnished or revised.
- Download, the copy of the TRAN-1/ GST TRAN-2 furnished on the common portal and submit a self-certified copy of that with the declaration in Annexure ‘A’ and a copy of TRANS-3, wherever it is applied to the jurisdictional tax officer within 7 days of filing the declaration in FORM TRAN-1/TRAN-2 at the common portal.
- To uphold the requisite documents/records/returns/invoices, for assisting the claim of the transitional credit, start to make that which is present to the related tax officers for verification.
- Precaution during filing or revising TRAN-1/TRAN-2 and tap on the information prior to filing the claim on the common portal. You should learn that the information in FORM TRAN-1/ TRAN-2 on the common portal could get amended or deleted from any record in any table of the mentioned forms would be permitted prior to tapping the submit button. Once the submit button would be tapped, the form would get frozen, and no more revising of the information would be permitted.
- To maintain requisite documents/ records/ returns/ invoices in assistance of their claim of transitional credit ready. The declaration in Form GST TRAN-1/TRAN-2 was filed/revised via them and shall be referred to needed verification through the related tax officers. They might need to produce the requisite documents/ records/ returns/ invoices to assist their claim of the transitional credit to the related tax officers for the verification of their claim and hence the jurisdictional tax officer would issue the order on it on the merits post providing a precisely reasonable chance of heard to them. According to the orders issued by the jurisdiction tax officer, the transitional credit permitted would be shown in their electronic credit ledger on the common portal.
A Registered Individual Needs to Confirm that
- They would submit all returns for the duration up to June 2017 needed beneath the current law,
- They secure the possession of the documents, evidence, invoices, accounts, statutory declarations, and additional records required for substantiation of the claim of transitional credit being created in T1/T2
- They have NOT claimed any credit, as per sections 140, 141 and 142 of the Central/ State/ UT Goods and Services Tax Act, 2017, in any return in FORM GSTR-3B us; in which case the special procedure will need to comply.
- They do not use or adjusted any credit amount beneath the current law, in answer to any demand/ liability that comes out of self-determination or assessment or audit, or investigation, from the amount claimed as transitional credit in FORM GST TRAN-1/TRAN-2.
- All the accounts, information, records, documents, and additional required proofs in their possession that are correct are carried via them.
