After two high courts flayed the government over the working of the GST Network — the firm handling the IT infrastructure for GST — the government has decided to allow individual firms to continue to claim transitional credits even though an earlier deadline was December 27, officials told FE. Separately, the indirect tax department will also establish a grievance redressal system after the Bombay High Court highlighted the need for the same earlier last week. The grievance redressal mechanism will also ensure that individual cases do not end up in court, the official said. “We will allow the petitioners access to the GSTN system so that they can claim transitional credit. If there are similar cases with genuine grievance, they will also be allowed to file the claim but TRAN-1 form will not be opened for all taxpayers,” the official said.
Earlier this month, the Allahabad HC had directed the Centre to either open the GSTN portal for filing TRAN-1 forms — used by taxpayers to claim transitional credit for taxes paid on pre-GST stock — or process the petitioner’s application manually. Under GST, the assessees were required to file TRAN-1 for availing credit on goods carried over to the GST regime. The petitioner claimed that despite making several efforts on the last date for filing the application (TRAN 1), the system did not respond, as a result of which the petitioner is likely to suffer loss of credit that it is entitled to by passage of time.