Supreme Court extends re-opening of GST Portal by 4 weeks, Bombay High Court directed CBIC to clarify transition of credit for ISD

by | Sep 6, 2022 | Outlook

With reference to trail mail, we wish to inform you that the Supreme Court has extended the timeline for re-opening of GST Portal for transition of pre-GST credits by 4 weeks in furtherance of its earlier Order dated July 22, 2022 (discussed in detail in trail mail). Accordingly, TRAN-1 and TRAN-2 can be filed / revised on GST Portal effective October 1, 2022.

Further, various Writ Petitions were filed before the Bombay High Court for transitioning of closing balance of ISD credit available into GST regime. While Section 140(7) of the CGST Act, 2017 allowed ISD to transition credit into GST regime, GST Portal did not support the same. Consequently, taxpayers followed different methodologies to avail such credit. The Bombay High Court in Unichem Laboratories Limited v. UOI (Writ Petition No. 109 of 2020), has held that taxpayers can avail benefit of Supreme Court’s order allowing revision of TRAN-1 and units / offices can avail transitional credit basis manual invoices issued by ISD. The Court has also directed CBIC to issue a clarification within 3 weeks on the process to be followed.

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