The journey to transition credits was a roller coaster ride for taxpayers since large number of taxpayers could not transition their credits and resultantly courts were flooded with writ petitions. Ultimately, the Apex Court directed reopening of the GST Portal permitting filing and revising of transitional credit forms by the taxpayers.

The taxpayers who were fortunate to transition their credits faced scrutiny of credits transitioned both under the erstwhile laws as also under the GST. The scrutiny by GST authorities is not limited to the conditions prescribed under transition provisions, but they encompassed into the eligibility of credit in the erstwhile laws. This led to jurisdictional issues as GST authorities started issuing recovery notices for alleged contraventions of the erstwhile laws. Simultaneously, the authorities under the erstwhile regime can also undertake verification of eligibility of credits availed under the erstwhile regime and can initiate recovery proceedings therein.

Apropos the dichotomous situation, through this article, our Partner, Mr. Dharnendra Kumar Rana, Associate, Mr. Rahul Sharma have delved into the aspect as to whether GST authorities have jurisdiction to venture into eligibility of credit in the erstwhile laws and make that as the basis for denying transitional credit. Authors have also drawn correlation of such powers with recent circulars issued by CBIC for verification of transitional credits.

Please click on the below link to read our article titled ‘Transitional Credits – Not everyone can knock your door’.

NITYA I Transitional Credits – Not everyone can knock your doorI Indirect Tax I Article 109