CBIC has issued clarification/guidelines for verification of the transitional input tax credit (ITC) by the field formations, in light of the Orders of the Hon’ble Supreme Court dated 22/07/2022 and 02/09/2022 in Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018.
CBIC GST Circular 182/14/2022 dt. 10/11/2022: CBIC Guidelines for Verification of Transitional Credit by field formations
The Hon’ble Supreme Court has directed that the common portal be opened for filing prescribed forms for availing Transitional Credit through TRAN-1 and TRAN-2 for the aggrieved registered persons (applicant or taxpayer or assessees) for two months from 01/10/2022 to 30/11/2022. The taxpayer’s Transitional Credit claim shall be credited in his electronic credit ledger to the extent permitted by the jurisdictional tax officer through an order after necessary verifications.
According to the Order of the Supreme Court, the said verification must be completed within 90 days of completing the above process of submitting required forms within a period/window of two months, i.e. within 90 days from 01/12/2022 (or say up to 28/02/2023).
It should be noted that, while allowing the applicant to file/revise TRAN-1/TRAN-2 during this two-month period, the Hon’ble Supreme Court has left all legal questions open.
Further that the Hon’ble Supreme Court has only allowed the filing of TRAN-1/TRAN-2 or revising the TRAN-1/TRAN-2 already filed by the applicant under the existing laws and has not allowed the applicant to file revised returns.
Aggrieved registered persons (taxpayers/assessees) are also encouraged to refer to the Board’s Circular No. 180/12/2022, dated 09/09/2022, which contains guidelines for filing new TRAN-1/TRAN-2 or revising previously filed TRAN-1/TRAN-2 on the common portal.
In order to ensure consistency in the implementation of the Hon’ble Supreme Court’s directions, the CBIC, in exercise of the powers conferred by section 168(1) of the CGST Act, has issued guidelines for verification of Transitional Credit by the field formations. (Please refer above attachment for detailed CBIC Guidelines)
CBIC guidelines on filing/revision of GST TRAN-1/TRAN-2: GST Circular 180/12/2022