CBIC Issues Guidelines For Filing/Revising TRAN-1/TRAN-2

The CBIC has issued the guidelines in terms of the order passed by the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd. The Supreme Court directed the Goods and Service Tax Network (GSTN) to open a common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months from 01.09.2022 to 31.10.2022.

The Apex court stated that GSTN has to ensure that there are no technical glitches during the said time. The concerned officers are given 90 days to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting an appropriate and reasonable opportunity to the parties concerned. The allowed transitional credit is to be reflected in the Electronic Credit Ledger.

The Board, with a view to ensuring uniformity in the implementation of the directions of the Supreme Court, has issued various directions.

The applicant may file a declaration in FORM GST TRAN-1/TRAN-2 or revise an earlier filed TRAN-1/TRAN-2 duly signed or verified through electronic verification code on the common portal. In cases where the applicant is filing a revised TRAN-1/TRAN-2, a facility for downloading the TRAN-1/TRAN-2 furnished earlier by him will be made available on the common portal.

As per the guidelines, the applicant shall, at the time of filing or revising the declaration in FORM GST TRAN-1/TRAN-2, also upload on the common portal the pdf copy of the declaration. The applicant claiming credit in table 7A of FORM GST TRAN-1 on the basis of credit transfer document (CTD) shall also upload on the common portal the pdf copy of TRANS-3, containing the details.

The CBIC states that no claim for transitional credit shall be filed in table 5(b) and 5(c) of FORM GST TRAN-1 in respect of such C-Forms, F-Forms, and H/I-Forms issued after the due date prescribed for submitting the declaration in FORM GST TRAN-1, i.e. after 27.12.2017.

When submitting a claim in FORM GST TRAN-2, the applicant must submit the entire claim in a single consolidated FORM GST TRAN-2, rather than filing the claim tax period by tax period, as specified in CGST Rules, 2017 Rule 117 (4)(b)(iii).In such cases, in the column 'Tax Period' in FORM GST TRAN-2, the applicant shall mention the last month of the consolidated period for which the claim is being made.

Within 7 days of filing the declaration in FORM TRAN-1/TRAN-2 on the common portal, the applicant must download a copy of the TRAN-1/TRAN-2 and submit a self-certified copy, along with the declaration and copy of TRANS-3, where applicable, to the jurisdictional tax officer. The applicant shall keep all the requisite documents/records/returns/invoices in support of his claim of transitional credit, ready to make the same available to the concerned tax officer for verification.

The option of filing or revising TRAN-1/TRAN-2 on the common portal during the period from 01.10.2022 to 30.11.2022 is a one-time opportunity for the applicant to either file the said forms, if not filed earlier, or to revise the forms earlier filed.

The CBIC directed that the applicant is required to take utmost care and precaution while filing or revising TRAN-1/TRAN-2 and thoroughly check the details before filing his claim on the common portal.

The applicant can edit the details in FORM TRAN-1/TRAN-2 on the common portal only before clicking the "Submit" button on the portal. The applicant is allowed to modify/edit, add, or delete any record in any of the tables of the forms before clicking the 'Submit' button. Once the "Submit" button is clicked, the form gets frozen, and no further editing of details is allowed. This frozen form would then be required to be filed on the portal using the "File" button, with a digital signature certificate (DSC) or an EVC.

"The applicant shall, therefore, ensure the correctness of all the details in FORM TRAN-1/TRAN-2 before clicking the "Submit" button. GSTN will issue a detailed advisory in this regard and the applicant may keep the same in consideration while filing the said forms on the portal," the CBIC said.

The declaration in FORM GST TRAN-1/TRAN-2 filed/revised by the applicant will be subjected to the necessary verification by the concerned tax officer. The applicant may be required to produce the requisite documents/records/returns/invoices in support of their claim of transitional credit before the concerned tax officer for verification of their claim. After the verification of the claim, the jurisdictional tax officer will pass an appropriate order thereon on the merits after granting an appropriate and reasonable opportunity of being heard to the applicant. The transitional credit allowed as per the order passed by the jurisdictional tax officer will be reflected in the Electronic Credit Ledger of the applicant on the common portal.

Circular No.180/12/2022-GST CBEC-20010/3/2022-GST

Dated: 09.09.2022

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