CBIC Issues Guidelines For Verification Of GST Transitional Credit Claims

The CBIC on Thursday issued guidelines for verification of GST transitional credit claims and said taxpayers will not be permitted to file revised returns for availing such credit.
     
When Goods and Services Tax (GST) was rolled out on July 1, 2017, taxpayers were allowed to file Form TRAN-1 and TRAN 2 and avail credit on the taxes paid in the pre-GST regime.
     
The Supreme Court had in July directed the revenue department to open GST portal for two months to enable taxpayers to file/revise Form TRAN-1 and TRAN-2. 
     
Accordingly, the GST portal opened on October 1 for two months for filing the revised transition claim form.  
     
These claims have to be verified by the tax officers within a 90-day period, which ends on February 28, 2023.
     
The Central Board of Indirect Taxes and Customs (CBIC) has now issued guidelines laying down important principles for determining eligibility of such credit claims.
     
It said the court has only allowed filing of TRAN 1/ TRAN 2 or revising the forms already filed by the applicant and has not allowed the applicant to file revised returns under the existing laws.
     
AMRG & Associates' Rajat Mohan said taxpayers are not permitted to file revised returns under the existing laws and if there is no change from the earlier filed TRAN-1/ TRAN-2, then such claim is liable for rejection by tax officer.  
     
"Guidelines also elaborate on the modalities of coordination between central tax authorities and state authorities, clarifying that all communications shall be made with the use of DIN," Mohan said.
     
KPMG in India Partner, Indirect Tax, Abhishek Jain said, "The GST Policy wing has laid down the manner of verification of TRAN 1/ 2 filed by assessees pursuant to Supreme Court order in case of Filco Trade Centre Pvt Ltd, while clarifying that the SC has kept questions of law open. The businesses should peruse the same to be better placed to revert to queries raised by authorities."