Goods and Service Tax

Bombay HC Permits Revision of Claim of GST Transitional Credit in Form GST TRAN-1

calendar18 Sep, 2021
timeReading Time: 4 Minutes
form GST TRAN 1

The Bombay High court permitted revision of the claim related to Transitional Credit in form GST TRAN-1. The complaint of the petitioner, Gayatri Agro Agencies, is that after the arrival of the Central Goods and Service Tax Rules, 2017, & Central Goods and Service Tax Act, 2017, there were various loopholes in the web-based submission of forms program due to the new regime. Under such a regime, the Gayatri Agro Agencies were allowed to carry forward prevailing accrued CENVAT upto 30/June/2017 u/s 140 of the Act

The petitioner submitted the GST TRAN-1 form claiming credit worth Rs .66, 45,387/- under the VAT & the Rs 7,77,489/- under the Excise Act. The form was submitted in the purview of the acknowledgement by the Good and Services Tax Department. When the plaintiff checked from the homepage, the plaintiff came across the message as “pending invoices” (these will be shared post validation). The petitioner came across the fact that the form has not been aptly submitted due to the GST portal loopholes.

The petitioner, thus, reported grievances regarding such glitches, & the copies of the same are lodged on the record. After posting series of grievances on 9/Dec/2017, 27/12/2017, and 30/12/2017, the petitioner came across the notification released by the GST portal on 02.01.2018 and 08.01.2018 stating that the resolution of the complaint is not possible because the timeline of uploading GST TRAN-1 form return has expired.

The petitioner also strived to manually submit the revised GST TRAN-1 form & intimated the department about the technical loopholes in the GST portal on 8/Jan/2018 and 20/Feb/2018. 

 The division bench of Justice Ravindra V. Ghuge & S. G. Mehari in the purview of an order issued by the and Haryana High Court & the Division Bench of Punjab in Advert Technologies Pvt. Ltd. Vs. Union of India & the order granted by the learned Division Bench of the High court in Gujarat[1] in Siddharth Enterprises Vs. The Nodal Officer, 2019, allowed the petitioner to tender the revised GST TRAN-1 form online and by tendering a copy manually to respondent number 4 within the period of two weeks.

General FAQs regarding the GST TRAN-1

Following are the generalized taxpayers’ queries regarding the filing of GST TRAN-1

What are Transitional Provisions?

As per the transitional norms of SGST/ CGST/ UTGST Act, registered taxpayers can avail credit of taxes paid under prevailing state or Central laws, such as VAT, Central Excise Act and Service Tax laws & brought them under the GST regime, if the same stands eligible as SGST/ CGST/ UTGST credit, subjected to norms/restrictions are cited in the GST Act. The claim regarding transitional credits can be made via Form GST TRAN – 1 and TRAN –

Why GST TRAN – 1 is being filed by the taxpayers?

Every registered taxpayer who stands eligible to avail credit of duties paid under prevailing laws pertaining to input or input services or capital goods in their Electronic credit ledger needs to share a declaration in Form GST TRAN – 1 within ninety days+ extended periods of the appointed day (1st/7/2017.)

Upon the errorless filing of GST TRAN – 1 online, the credit will find its way to the taxpayers’ Electronic Credit Ledger & can be used for discharge of liabilities.

What steps need to be followed for the submission of the transition GST TRAN – 1?

First, visit the GST portal and search for the TRAN-1 option enlisted under the Transition Form option under the Service section. Fill that e-form and then file it via DSC/ EVC.

What is the last date of filing the GST TRAN – 1?

Taxpayers are required to file the Transition Form GST TRAN – 1 within <90 days > from the appointed day. The time limit can be stretched out another 90 days by the commissioner on the advice of the GST council.

Is it possible to amend the transition Form GST TRAN – 1?

A one-time revision is allowed for the taxpayers who have either uploaded or filed their GST Tran-1 form. But, the details of the transfer of cenvat credit for taxpayer having centralized registration under prevailing law section 140(8) as notified in the preceding submission cannot be revised downwards. But, you can transfer more credit, if applicable.

Is it mandatory for the composition taxpayer to submit the transition form?

No, composition taxpayers are not mandated to submit the transition form as per the prevailing GST law.

What will be the portal response after the successful filing of the GST TRAN – 1?

Upon the errorless filing of the GST TRAN – 1 form, Portal generates the ARN and credits the transition credit to the taxpayer’s Electronic Credit Ledger. The taxpayer can use the same to offset the tax obligations under the GST regime.

What are the possible outcomes of filing transition Form GST TRAN – 1 in the absence of DSC/EVC?

Credit availed in GST TRAN-1 gets credited to the digital credit ledger upon errorless submission of the Form GST TRAN -1. But, form filing with a digital signature is vital for subsequent utilization of the credit.


Not allowing revision of claim in GST TRAN-1 was acting as the deterrent for the taxpayers. Bombay HC decision to permit revision of claim is come out as a sign of relief for the taxpayers who were confronting tons of issues while demanding for claim on the GST portal.

Read our article:GSTR-2A and GSTR-2B: Know the key differences

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