Following the Supreme Court’s judgment, the Central Board of Indirect Taxes and Customs (CBIC) issued a circular reopening the window for claiming transitional Input Tax Credit (ITC) through the Goods and Services Tax (GST) portal by filing TRAN-1/ TRAN-2.
According to the circular,
- You can either file a new GST TRAN-1/ TRAN-2 form or update an existing one.
- The chance to file or revise will be accessible between October 1st, 2022, and November 30th, 2022.
- If you are modifying a previously submitted TRAN-1/ TRAN-2, you can download it from the portal.
- On the GST site, you must upload Annexure ‘A’ along with TRAN-1/ TRAN-2 forms.
- If you are claiming ITC based on the Credit Transfer Document (CTD) in table 7A of TRAN-1, you must additionally submit a PDF copy of the TRANS-3 as per Notification No. 21/2017-CE(NT) dated 30.06.2017.
- You cannot claim the transitional credit for C-Forms, F-Forms, and H/I-Forms issued after December 27, 2017, i.e. after the TRAN-1 submission deadline.
- When filing TRAN-2, you can submit the whole claim in one consolidated TRAN-2 rather than filing the claim tax year by tax period. In such circumstances, including the last month of the consolidated tax period in the ‘Tax Period’ column.
- This option is only available to taxpayers once, and no additional revisions will be permitted after the file is complete.
- As a result, you must exercise extreme caution while completing or modifying transitional ITC filings.
- On the GST site, you can verify using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
- If you previously submitted TRAN-1/ TRAN-2 and do not wish to make adjustments, you are not needed to file/ amend these forms again.
- Within seven days of filing, you must provide a self-certified copy of the filed TRAN-1/ TRAN-2, along with Annexure ‘A’ and TRANS-3, as applicable, to the jurisdictional tax officer.
- Assume your transitional ITC was denied in all or part based on the earlier submitted TRAN-1/ TRAN-2. In that situation, you may choose to submit an appeal against the order or pursue other legal options.
- In circumstances where adjudication/appeal processes are pending, contacting the appropriate adjudication/appeal body will provide you with a resolution. However, registering a new TRAN-1/ TRAN-2 to reclaim the transitional ITC is not the best option.
- TRAN-1/ TRAN-2 forms that have been filed or changed are subject to scrutiny by the appropriate tax officials.
- You may be asked to submit supporting documentation to support your transitional ITC credit claims.
- After providing a reasonable chance to be heard, the jurisdictional tax officer will issue an appropriate ruling based on the merits.
- The authorized transitional ITC would be displayed on your Electronic Credit Ledger (ECL).