Supreme Court Orders to Open GST portal to Claim Transitional Credit for Two Months [Read Order]

The Supreme Court has ordered to open the GST system, enabling taxpayers under the GST regime to claim transitional credit for two months. This is a significant relief for taxpayers under the GST regime.

In the past, different High Courts have made similar statements and ordered the government to open the portal.

Those registered taxpayers who are qualified to receive a credit in the Electronic Cash Ledger for eligible duties and taxes previously paid on inputs under the pre-GST regime must file the Transition Form 2, or TRAN-2.

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The government has been given the following instructions by Justice SA Nazeer’s order:

First, from 1 September 2022 to 30 October 2022, the GST portal will be available for all assesses to claim transitional credit. The benefit must be made available to all assesses in order for them to receive it, whether or not they have petitioned for it.

Second, the GSTN shall ensure that there are no technical difficulties during this period, as the majority of petitions and taxpayers missed the deadline owing to delays in filing returns as a result of technical difficulties.

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After the filing is complete, the officers will have 90 days to review the credit claim’s merits and issue the necessary orders. This must be done in accordance with the principles of natural justice and the assessee’s right to a hearing. Credit will then appear in the electronic credit ledger.

The Central Board of Indirect Taxes and Customs (CBIC) was further ordered to issue instructions by the court.

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