Businesses were recently allowed to file forms on the Goods and Service Tax Network (GSTN) for availing transitional GST credit through forms TRAN-1 and TRAN-2 for two months based on a Supreme Court order.

CBIC said that the apex court had directed that the portal should be opened for filing prescribed forms for availing transitional credit for two months up to 30 November for aggrieved registered assessees.

The transitional credit claimed by the applicant shall be credited in his electronic credit ledger to the extent allowed by the jurisdictional tax officer through an order after carrying out necessary verifications. As per the court's order, this verification has to be carried out within 90 days after completion of the above filing window of two months, i.e. within 90 days from 1 December 2022, that is, by 28 February 2023, CBIC said.

CBIC said that while allowing applicants to file or revise the forms during this window of two months, the Supreme Court had kept all questions of law open.

"It may be mentioned that Supreme Court has only allowed filing of Tran 1/Tran-2 or revising the Tran-1/Tran-2 already filed by the applicant and has not allowed the applicant to file revised returns under the existing laws," CBIC said.

Reference is also invited to guidelines issued for the applicants for filing new forms or revising the already filed forms on the common portal, CBIC said.

CBIC also said that the guidelines were issued to ensure uniformity in the implementation of the directions of the Supreme Court.

Abhishek Jain, partner, Indirect Tax at KPMG in India, said that the GST Policy wing has laid down the manner of verification of tran1/ 2 filed by assessees pursuant to the Supreme Court order, while clarifying that the court has kept questions of law open. "Businesses should peruse the same to be better placed to revert to queries raised by authorities," said Jain. (ends)