File Your Tran-1 and Tran-2 Forms Till 30-11-2022

CA. S.D. Purohit

-- In pursuance of the Supreme Court decision in Filco Trade Center's case, the Government has provided one time opportunity to furnish Form TRAN-1 and TRAN-2 (in short 'TRAN Forms') during 1-10-2022-30-11-2022.

-- The window is open for all taxpayers, whether or not they have filed TRAN Forms earlier. So, if a taxpayer could not file TRAN Forms for any reason or if a taxpayer wants to revise the TRAN Forms filed earlier, it may furnish the same upto 30-11-2022.

-- On the GST Portal, the default filing status of TRAN Forms for all taxpayers would be visible as Not Filed. It means that TRAN forms are not filed in the new window.

-- Those registered person who had successfully filed TRAN Forms earlier, and who do not require to make any revision in the same, are not required to file/revise TRAN Forms again. If, however, the taxpayer has already filed his original TRAN and wants to revise the Forms, he is required to file complete form rather than furnishing differential values.

-- The CBIC has also issued Circular No. 180/12/2022-GST on 9th September, 2022 containing Guidelines for filing/revised TRAN Forms, which should invariably be referred to before trying to file TRAN Forms.

-- One of the important requirement while filing TRAN Forms is that the applicant is also required to upload PDF copy of Annexure 'A' as provided in the Circular. The applicant is required to download a copy of the TRAN-1 or TRAN-2 filed on the common portal and submit a self-certified copy of the same, alongwith declaration in Annexure 'A' with 7 days of filing of declaration in FORM TRAN-1/TRAN-2 on the common portal.

-- If the credit relates to C-Forms, F-Forms and H/I Forms which have been issued after 27-12-2017, the same cannot be claimed in the TRAN Forms.

-- You can edit the details of TRAN Forms 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 table of the said forms before clicking the 'Submit' button. Once 'Submit' button is clicked, the form gets frozen, and no further editing of details is allowed.

-- If the credit availed on the basis of form TRAN Forms filed earlier is rejected wholly or partly, the taxpayer is advised to prefer an appeal against the said order. The taxpayer should not furnish fresh TRAN Forms.

-- The declaration in Form GST TRAN-1/TRAN-2 filed/revised by the applicant will be subjected to necessary verification by the jurisdictional 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 officers for verification of their claim. The CBIC has also detailed Circular on 10th of the November containing Guidelines for verifying the Transitional Credit by the State as well as Central Authorities.

-- In Circular No. 182/14/2022-GST, dt. 10-11-2022, the CBIC has issued guidelines for verification of the Transitional credit clamed by the taxpayers in TRAN Forms. This Circular is meant for departmental officers. Annexure-I to the Circular contains Guidance Note for verification of CGST Transitional Credit claimed by the Applicant in TRAN-1/TRAN-2. In this Annexure, various checks have provided for entries made in various Tables of the TRAN Forms. Annexure II contains Verification Report for TRAN-1/TRAN-2 to be submitted by the counterpart officer to the Jurisdictional Tax Officer.

-- After the verification of the claim, the jurisdictional tax officer will pass an order after granting reasonable opportunity of being heard to the applicant. The transitional credit allowed as per the order passed by the department will be reflected in the Electronic Credit Ledger.

-- The jurisdictional tax officer shall provide an opportunity of hearing to the applicant and thereafter pass a reasoned order within 15 days from the date of personal hearing, specifying the amount of transitional credit allowed to be transferred and upload the PDF copy of the said order within 90 days from 1st December, i.e. upto 28-02-2023.

-- Where amount originally credited in the ITC ledger exceeds the amount of credit admissible in terms of revised TRAN-1/TRAN-2 filed by the assessee, such excess credit is liable to recovered form the applicant alongwith interest and penalty.

-- It is the last opportunity to file TRAN Forms of your clients, if it could not be filed earlier. Verify your records carefully and then prepare Form TRAN-1 and TRAN-2.

-- Make sure to verify the details before pressing the 'Submit' button. Once 'submit' button is clicked, the form would get frozen and no further editing of details would be allowed.