Issues in Filing of TRAN 1 and TRAN 2



Quick Summary
This article addresses common issues faced by taxpayers when filing TRAN 1 and TRAN 2, particularly concerning the claiming of pre-GST credit. A significant High Court verdict, upheld by CBIC circulars, now allows taxpayers to claim eligible ITC left from previous years. The process involves verification by officers within 90 days, with separate approvals for central and state taxes.

Issues in Filing of TRAN 1 and TRAN 2, the legitimate passed by taxpayers in hands of Tax

The claiming of TRAN 1 through GSTR 3, When the credit was not uploaded in 2017 September, this issue is confronted to all states throughout India, the issue of credit is still being debated in all the places in respect of States through India and the department has come with a solution for the above through High court verdict.

In the decision of the High Court of Madras, this issue was identified and dismissed in the case of Commissioner of GST and central excise Vs BHEL, where the applicant is allowed to claim ITC, which was left in previous years. The credit of Pre GST is allowable as per HC judgment and it can be taken as the final verdict.

TRAN 1 and TRAN 2 Filing Issues: High Court Verdict

Now the CBIC vide notification vide Circular No 182/ 14/2022-GST is allowable as per HC Judgment Filco Trade Centre Vs UOI order dated 22.07.2022 and 02.09.2022.

The officers are given 90 days to verify the nature of the credit and to be uploaded in the portal. This will increase the Limit of the Electronic Credit ledger. Once the net of ITC is Transferred from VAT, service tax accumulated credit, it cannot be altered Few states follow Module 1 and few states Module 2 and verification should be done by the State Nodal officer and after final approval by jurisdiction officer,and credit is approved and accepted.

 

Also, the Service tax and Excise will be approved by the Principal Commissioner of Central Excise and Service tax and state credit wiz VAT, TOT, Resale tax will be approved by the State assessing authority.

The State officer under state jurisdiction and a central officer will have a common sharing, so the error is avoided on both taxes.

 

We hope that the revenue will go for soft stand for a further extension since time is given.


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