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TMI BlogGuidelines for verifying the Transitional Credit in light of the order of the honourable Supreme Court in the Union of India v. Filco Trade Centre Pvt. Ltd., SLP(C) Nos. 32709-32710/2018, order dated July 22, 2022 and September 2, 2022X X X X Extracts X X X X X X X X Extracts X X X X ..... ths, i. e., with effect from September 1, 2022 to October 31, 2022. 2. Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC). 3. GSTN has to ensure that there are no technical glitch during the said time. 4. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned. 5. Thereafter, the allowed transitional credit is to be reflected in the electronic credit ledger. 6. If required GST council may also issue appropriate guidelines to the field formations in scrutinizing the claims. The special leave petitions are disposed of accordingly. Pending applications, if any, also stand disposed of." 1.2. Subsequently in Miscellaneous Application Nos. 1545-1546 of 2022 in SLP(C) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k office systems i. e., Bo-Web portal. Further, a self-certified downloaded copy of TRAN-1/TRAN-2 filed/revised by the applicant shall also be made available to the jurisdictional tax officer by the said applicant as mentioned in para 4.5 of Circular 180/12/2022. 5.2 The verification of the transitional credit shall be conducted by the jurisdictional tax officer who will pass an appropriate order regarding the veracity of the claim filed by the applicant, based on all the facts and the provisions of the law. In respect of TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the State tax authorities, such verification and issuance of order shall be done by the jurisdictional officer of State tax, whereas in respect of TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the Central tax authorities, the same shall be done by the jurisdictional officer of Central tax. The jurisdictional tax officer shall start the verification process immediately on availability of TRAN-1/TRAN-2 filed/revised by the applicant on the back office system or on receipt of self-certified downloaded copy of the same from the applicant, whichever is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional tax officer shall, in parallel, continue the verification of the remaining portion of the transitional credit at his end. 5.3.4 The jurisdictional tax officer and the counterpart tax officer shall verify the transitional credit claimed under the SGST or the CGST head, as the case may be, by referring to the points detailed in annexure I to this circular for transitional credit pertaining to state tax and the guidelines issued by the CBIC for verification of transitional credit pertaining to the Central tax, as applicable. While conducting the verification, the officer must also check whether any adjudication or appeal proceedings in TRAN-1/TRAN-2 related matter are pending/concluded against the applicant. In such cases, where any adjudication or appellate proceedings have been initiated against the applicant in respect of TRAN-1/TRAN-2, the officer should take a note of the relevant facts in the notice/order, and the grounds/reasons for inadmissibility of transitional credit, if any, in the said notice/order. 5.3.5 In respect of verification done by the counterpart officer, after verification, he will prepare a verification report, in the format detailed in Annexure-II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant and the comments, if any, of the counterpart officer on the same, the jurisdictional tax officer shall proceed to pass a reasoned order, preferably within a period of fifteen days from the date of personal hearing, specifying the amount of transitional credit allowed to be transferred to the electronic credit ledger of the applicant and upload a pdf copy of the said order, on the common portal for crediting the amount of allowed transitional credit to the electronic credit ledger of the applicant. In any case, such order shall be passed within a period of 90 days from December 1, 2022, i. e., up to February 28, 2023. 5.3.9 Where the amount credited to the electronic credit ledger pursuant to the originally filed TRAN-1/TRAN-2 exceeds the amount of credit admissible in terms of the revised TRAN-1/TRAN-2 filed by the applicant, such excess credit is liable to be demanded and recovered from the applicant, along with interest and penalty, in accordance with the provisions of Chapter XV of the Act and the rules made thereunder. 5.3.10 GSTN will also issue a separate advisory for entering the details on the portal by the tax officers. 6. Modalities of coordination between st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meant to be used by the taxpayers who have availed a portion of VAT credit on capital goods through VAT XV or VAT XVA return and now intend to avail remaining credit in respect of capital goods which has not been availed through the VAT XV or VAT XVA. The said amount of credit should have been admissible as input tax credit under GST law as well as under existing law. 3. Column (9) in Table 7(b) 140(5) This table captures transitional credit taken on such inputs or input services which were received after 1st of July, 2017 but taxes on which were paid under the existing law (Goods). It does not apply to capital goods. 4. Table 7(c) Column (8) in Table 7(c) 140(3), 140(4)(b) and 140(6) This table pertains to credit claim by new taxpayers or taxpayers who were either not registered or were not part of VAT credit chain earlier. Here, credit can be claimed in TRAN-1 in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day based on invoice/document evidencing payment of tax, subject to fulfilment of other conditions specified in section 140(3), 140(4)(b) and 140(6) as the case may be. 5. Column 6 in Table 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n recovered, either in cash or debit to credit ledger (6) Attach copies of the relevant notice/adjudication order 3. (a) Whether appeal has been filed against the adjudication order, if any, specified in serial number 2 above ; if "Yes", provide appeal number and date of filing appeal. (b) If appeal has been disposed of, then provide order number and date : (c) Details relating to appellate order : *Table of TRAN-1/TRAN-2 Findings of Appellate Authority $ Whether recovered (a) (b) (c) Notes : (1) Add additional rows if required (2) *Specify the serial number of the Table (as mentioned in Table at serial number 2 above) and the amount of tax the claim in respect of which has been adjudicated and the appeal has been decided. (3) $Specify whether amount has been recovered, either in cash or debit to credit ledger (4) Attach copies of the order of the appellate authority 4. Amount of credit claimed afresh/revised (as per TRAN-1/TRAN-2 filed/revised during the present window of two months) by the applicant, the amount admissible, the amount inadmissible, if any, along with the grounds/ reasons for non-admissibility thereof : Table Amount Claimed in newly filed/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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