2024 (9) TMI 1473 - HC - GST

Transition of ITC - Period of transition wherein the Input Tax Credit available under the VAT regime was to be electronically transferred to the Electronic Credit Ledger as available to the assessees under the GST regime - petitioner contends that the non-uploading of the Form cannot restrict the Input Tax claim validly permissible under the CGST Act - HELD THAT - This Court after noticing Section 18 of the GST Act with the nominal heading Availability of credit in special circumstances held As far as the transitional claims are concerned there is a further limitation prescribed as on 27.12.2017 and then of course as per the Hon ble Supreme Court s directions there was a window of two months provided. Unless the claim is made in Form GSTR TRAN-1 within the time initially provided or that provided later to get over the teething problems there can be no claim raised even for credit of input tax and its set off and never of a refund in cash. The petitioner hence cannot claim for the credit at this point of time. Despite the writ petition having been filed in 2022 the petitioner ought to have availed of the window of relief made available between 01.10.2022 and 30.11.2022. There is no question of a credit being permitted which has not been sought for in the prescribed manner and within the time stipulated. There are absolutely no reason to entertain the writ petition the same is dismissed.

Summary

Issues:
1. Claim of Input Tax Credit under the Goods and Services Tax Act, 2017 for the transition period from the Bihar Value Added Tax Act, 2005.
2. Non-uploading of transitional credit in Form GST TRAN-1 for set off against output tax payable in the GST regime.
3. Validity of Input Tax claim despite non-uploading of Form GST TRAN-1.
4. Availability of special window for making claims under Section 140 of the GST Act.
5. Interpretation of Section 18 of the GST Act regarding the availability of credit in special circumstances.

Detailed Analysis:

1. The petitioner, previously registered under the Bihar Value Added Tax Act, 2005, transitioned to the Goods and Services Tax Act, 2017. The issue revolved around the transfer of Input Tax Credit from the VAT regime to the GST regime for set off in output tax payable.

2. The petitioner, engaged in trading of Greases and Lubricants, failed to upload transitional credit of Rs. 36,32,158.90 in Form GST TRAN-1 for credit in the Electronic Credit Ledger against output tax payable under GST. The petitioner cited Section 140 for transitional arrangements and Rule 117 for uploading details of Input Tax Credit from the VAT regime.

3. The petitioner contended that the non-uploading of Form GST TRAN-1 should not restrict the valid claim of Input Tax under the CGST Act. It was argued that the writ petition had been pending for years.

4. A previous decision of the Court highlighted the provisions of Section 140 and Rule 117 of the GST Rules, 2017. The Court noted the availability of a special window from 01.10.2022 to 30.11.2022 for making claims under Section 140, which the petitioner did not utilize.

5. The Court interpreted Section 18 of the GST Act, emphasizing the transitional provisions under Section 140 allowing businesses registered under VAT to carry forward credits for set off in the GST regime. The Court specified limitations on availing such credits and the necessity of adhering to prescribed timelines for claims.

6. The Court concluded that the petitioner could not claim credit at the present time as the relief window provided between 01.10.2022 and 30.11.2022 was not utilized. Emphasizing the importance of adhering to prescribed procedures and timelines, the Court dismissed the writ petition.

In summary, the judgment addressed the complexities of transitioning Input Tax Credit from the VAT regime to the GST regime, highlighting the significance of complying with prescribed procedures and timelines for claiming credits under the GST Act.