GST UPDATE

*Desk of CA. PRAVEEN SHARMA:-* 

Series- *374*.

*Opening of TRAN-1*

1. Bombay High Court in the case of Siemens Ltd., Cummins India Limited, and Procter & Gamble Health Limited V/s Union of India.

2. Issues Involved:- The present batch of Petitions has been filed in relation to the procedural difficulties/objections raised with regard to distribution and/or utilization and/or eligibility of Input Service Distributor (ISD) credit of Service Tax/excise duty under Section 140 of the CGST Act 2017.

3. The court observed that Hon’ble Apex Court in an order dated 22nd July 2022 has directed the GST Network to open the common portal to file/rectify TRAN-1 and TRAN-2 for a period of two months, i.e., with effect from 1st September 2022 to 31st October 2022 to enable the different private parties to avail Transitional Credit.

4. GSTN has to ensure that there is no technical glitches during the said time.

5. 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 the appropriate reasonable opportunity to the parties concerned.

6. Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.

7. If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.

*Case referred/cited-*

Union of India Versus Filco Trade Centre Pvt. Ltd. (SC)

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