GST Daily

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Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com.

HC quashes assessment order passed without disclosing relied upon materials and information to notice

M.R. Metals v. Deputy Commissioner (ST) - [2022] 145 taxmann.com 127 (Andhra Pradesh)

The department conducted the inspection in the business premises of the petitioner and issued a DRC-01A notice alleging that suppliers were fake and goods were not transported. It was also alleged that the petitioner failed to produce original tax invoices and some owners of vehicles denied hiring the vehicles to the petitioner for the transport of the goods. The petitioner filed a writ petition and contended that it submitted a letter seeking an extension of time but the order was passed without providing a response.

The Honorable High Court noted that the authority relied upon material and details like names of fake suppliers, names of toll gates through which goods were not transported and names of vehicle owners claimed as not hired for transportation but these details were not furnished. Since this material formed part of the impugned order, the assessing authority ought to have furnished the said material enabling the petitioner to defend or make representation and it would be a violation of the principles of natural justice.

Thus, the Court held that the impugned order was to be set aside and the petitioner was directed to make an application seeking such details and the assessing authority was directed to pass the order after considering an objection to be filed by the petitioner.

Avail One-time Opportunity to claim the missed out Transitional Credit in GST

Rajeev K. Sharma - [2022] 145 taxmann.com 160 (Article)

Introduction

GST Law contains detailed provisions to carry forward the input tax credit earned by the GST Registered Persons ["Registered Person"] before the 1st of July, 2017. Such credit [left out credit] was to be carried forward/claimed in GST Forms Tran-1 and Tran-2 [T1 and T2] to be filed on the GST portal 'before 27.12.2017'. The GST Registered Persons who could not carry forward/claim left out credit or who could not correctly carry forward/claim left out credits have been granted a one-time opportunity under the orders of honourable Supreme Court of India.

Details are:

"In accordance with the above-referred directions of Hon'ble Supreme Court, vide order dated 22.07.2022 in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018 read with their order in Miscellaneous Application No.1545-1546/2022 in SLP(C) No. 32709-32710/2018 the facility for filing TRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the common portal by an aggrieved registered assessee will be made available by GSTN during the period from 01.10.2022 to 30.11.2022."

''Registered Persons' might not have carried forward/claimed 'left out credit/'correct left out credit before 27.12.2017. Now they may claim left out credit which is a one-time opportunity and should not be missed; otherwise, it will have a financial impact. Once ''Registered Persons' files T1/T2 or revises the T1/T2 filed earlier on the common portal, no further opportunity to again file or revise T1/T2, subsequently, will be available to them.

Guidelines for Registered Persons for filing TRAN-1/TRAN-2 or revising earlier filed TRAN-1/TRAN-2

1. There may be a situation in that Registered Persons did not file a declaration in FORM GST TRAN-1/TRAN-2 [T1/T2], now they may file T1/ T2.
2. There may also be a situation in that they had earlier filed TRAN-1/TRAN-2, but due to any left-out credit in those forms, there is a need to revise the earlier filed TRAN-1/TRAN-2. In such a case ''Registered Person' will be able to download previously filed T1/T2 from the GST Portal, facility to revise T1/T2 is made available by the GST portal.
3. GST portal is presently open for filling new T1/T2 and revising old T1/T2 w.e.f. 01.10.2022 and will remain open up to 30.11.2022.

Action points, Registered Persons have to exercise

1. To check whether any Credit is pending to be claimed on the basis of a Credit Transfer Document (CTD).
2. To check whether any credit is pending to be claimed in respect of such C-Forms, F-Forms and H/I-Forms which have been issued 'before' the 27th?of December, 2017.
3. To also fill and submit Annexure 'A' to the jurisdictional tax officer, once T1/T2 is filed or revised.
4. To download a copy of the TRAN-1/TRAN-2 filed on the common portal and submit a self-certified copy of the same, along with declaration in Annexure 'A' and copy of TRANS-3, where ever applicable, to the jurisdictional tax officer within 7 days of filing of declaration in FORM TRAN-1/TRAN-2 on the common portal.
5. To keep all the requisite documents/records/returns/invoices, in support of the claim of transitional credit, ready for making the same available to the concerned tax officers for verification.
6. Take utmost care and precaution while filing or revising TRAN-1/TRAN-2 and thoroughly check the details before filing the claim on the common portal. Kindly note that the details in FORM TRAN-1/ TRAN-2 on the common portal can be edited 'only' before clicking the 'Submit' button on the portal. Modification/editing, adding or deleting of any record in any of the tables of the said forms will be allowed only before clicking the 'Submit' button. Once the 'Submit' button is clicked, the form gets frozen and no further editing of details will be allowed.
7. To keep requisite documents/ records/ returns/ invoices in support of their claim of transitional credit ready. The declaration in FORM GST TRAN-1/TRAN-2 filed/revised by them will be subjected to necessary verification by the concerned tax officers. They may be required to produce the requisite documents/ records/ returns/ invoices in support of their claim of transitional credit before the concerned tax officers for verification of their claim, and thereafter, the jurisdictional tax officer will pass an appropriate order thereon on merits after granting an appropriate reasonable opportunity of being heard to them. The transitional credit allowed as per the order passed by the jurisdictional tax officer will be reflected in their Electronic Credit Ledger on the common portal.

Registered Persons have to ensure that

1. They have submitted all returns for the period up to June 2017 required under the existing law;
2. They have in possession of all documents, evidence, invoices, accounts, statutory declarations and other records necessary for substantiation of the claim of transitional credit being made in T1/T2
3. They have NOT claimed any credit, within the meaning of sections?140,?141?and?142?of the Central/ State/ UT Goods and Services Tax Act, 2017, in any return in FORM GSTR-3B us; in which case the special procedure will have to be followed.
4. They have NOT utilized or adjusted any amount of credit under the existing law, in response to any demand/ liability arising out of self-determination or assessment or audit or investigation, out of the amount being claimed as transitional credit in FORM GST TRAN-1/ TRAN-2;
5. They have all the accounts, information, records, documents and other necessary evidence in their possession which are true and correct.

Advised that earliest possible actions for completing procedural work related to checking of any left out claim should be taken to avoid last-minute rush and possible mistake(s) that may occur due to hurry.

That’s it from us for today! Stay Tuned for more updates from?Taxmann.com

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