GST - #SectorUpdates
The Supreme Court has recently directed the Government to open the GST portal (GSTN) for an additional two-month window, from 1st September 2022 to 31st October 2022 for filling Transition Form-1 (“TRAN-1”) and Transition Form-2 (“TRAN-2”) for settling claims of transitional credit. A transitional tax credit is a component of a company’s tax payment that can be applied to offset a subsequent tax obligation. When India moved from the previous indirect tax regime to GST, a one-time transition of credit was allowed. TRAN-1 and TRAN-2 forms were brought in to allow companies to claim transitional credit. The judgment upheld the principles of equity, by allowing the vested right to be carried forward in GST returns. The judgment will help taxpayers across India who were struggling to get credit concerning transitional rights. The taxpayers need to utilize this opportunity to file their transitional claims or rectify returns filed.