Guidelines for filing/revising TRAN-1/TRAN-2

On July 22, The Supreme Court in the case of “Union of India Vs. M/s Filco Trade Centre Private Limited” gave a landmark verdict by allowing the pre Goods and Service Tax (Credit) and directed for opening the common portal for filing TRAN1 from 1st September, 2022 until 31st October, 2022.

However the Supreme Court provides Finance Ministry 30 extra days for opening of Transitional Credit Forms on GST Portal i.e. from 1st October, 2022.

The CBIC vide Circular No. 180/12/2022 – GST dated Sept 09, 2022 issued guidelines for filing/revising TRAN-1/TRAN-2 in terms of order dated July, 2022.

  • Guidelines for  the applicant for  filing  TRAN-1/TRAN-2  or  revising  earlier  filed TRAN-1/TRAN-2:
  1. The applicant may file declaration  in  FORM  GST TRAN-1/TRAN-2  or  revise  earlier filed  TRAN-1/TRAN-2  duly  signed  or  verified  through  electronic  verification  code on the common portal. In cases where the applicant is filing a revised TRAN-1/TRAN-2, a facility for downloading  the  TRAN-1/TRAN-2 furnished  earlier by  him will  be  made  available on  the common portal.
  2. The applicant shall at the time of filing or revising the declaration in FORM GST TRAN-1/TRAN-2, also upload on the  common  portal the  pdf  copy  of a  declaration  in  the  format as given in Annexure ‘A’ of this circular. The applicant claiming credit in table 7A of FORM GST TRAN-1  on  the  basis  of  Credit  Transfer  Document  (CTD)  shall also  upload on  the  common portal the pdf copy of TRANS-3, containing the details in terms of the Notification No. 21/2017-CE(NT) dated 30.06.2017.

 

  1. No claim for transitional credit shall be filed in table 5(b) & 5(c) of FORM GST TRAN-1 in respect  of  such  C-Forms,  F-Forms  and  H/I-Forms  which  have  been  issued  after  the  due  date prescribed for submitting the declaration in FORM GST TRAN-1 i.e. after 27.12.2017.

 

  1. Where the applicant files a claim in FORM GST TRAN-2, he shall file the entire claim in one consolidated FORM GST TRAN-2, instead of filing the claim tax period wise as referred to in sub-clause (iii) of clause (b) of sub-rule (4) of rule 117 of the Central Goods and Services Tax Rules, 2017. In such cases, in the column ̳Tax Period‘ in FORM GST TRAN-2,  the  applicant shall mention the last month of the consolidated period for which the claim is being made

 

  1. The applicant shall download  a  copy  of  the  TRAN-1/TRAN-2  filed on  the  common portal and submit a self-certified copy of the same, along with declaration in Annexure ‘A’ and copy of TRANS-3, where ever applicable, to the jurisdictional tax officer within 7 days of filing of declaration  in  FORM TRAN-1/TRAN-2on  the  common  The  applicant  shall keep  all the  requisite  documents/records/returns/invoices, in  support  of his claim  of  transitional  credit,ready for making the same available to the concerned tax officers for verification.

 

  1. It is  pertinent  to  mention  that  the  option  of  filing  or  revising  TRAN-1/TRAN-2on  the common  portal  during  the  period  from 01.10.2022  to  11.2022 is a  one-time  opportunity  for the applicant to either file the said forms, if not filed earlier,or to revise the forms earlier filed. The applicant is  required  to  take  utmost  care  and  precaution  while  filing or  revising TRAN-1/TRAN-2 and thoroughly check the details before filing his claim on the common portal.

 

  • n this  regard,  it  is  clarified  that  the applicant can  edit  the  details  in  FORM  TRAN-1/ TRAN-2 on  the  common  portal  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 formsbefore clicking the  ̳Submit‘ button. Once ―Submit‖ button is clicked, the form gets frozen, and no  further  editing  of  details  is    This  frozen  form  would  then berequired  to  be  filed  on the portal using ―File‖ button, with Digital signature certificate (DSC) or an EVC.The applicant shall,  therefore,  ensure  the  correctness  of  all  the  details  in  FORM  TRAN-1/  TRAN-2  before clicking  the  ―Submit‖  button. GSTN  will  issue  a  detailed  advisory  in  this  regard  and  the applicant maykeep the same in consideration while filing the said forms on the portal.

 

  • It is  further  clarified  thatpursuant to the order of the Hon‘ble Apex Court,once  the applicant files TRAN-1/TRAN-2 or revises the said forms filed earlier on the common portal,no further  opportunity  to  again  file  or reviseTRAN-1/TRAN-2,  either  during  this period or subsequently, will be available to him.

 

  1. It is clarified that those registered persons, who had successfully filed TRAN-1/TRAN-2 earlier, and who do not require to make any revision in the same, are not required to file/ reviseTRAN-1/TRAN-2 during  this  period  10.2022  to  30.11.2022.In  this  context, it  may further be noted that in such cases where the credit availed by the registered person on the basis of  FORM  GST  TRAN-1/TRAN-2 filed earlier,has either wholly  or  partly been rejected  by  the proper officer, the appropriate remedy in such cases is to prefer an appeal against the said order or to pursue alternative remedies available as per law. Where the adjudication/ appeal proceeding in such cases is pending,the appropriate course would be to pursue the said adjudication/ appeal.In such cases,filing a fresh declaration in FORM GST TRAN-1/TRAN-2,pursuant to the special dispensation being provided vide this circular, is not the appropriate course of action.

 

  • The declaration in FORM  GST TRAN-1/TRAN-2  filed/revised by  the applicant will  be subjected to necessary verification by the concerned tax officers. 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    After  the verification of  the  claim,  the  jurisdictional  tax  officer  will  pass an appropriate  order  thereon  on merits  after  granting  appropriate  reasonable  opportunity  of  being  heard  to  the applicant. The transitional  credit allowed  as  per  the  order  passed  by  the  jurisdictional  tax  officer will  be reflected in the Electronic Credit Ledger of the applicant on the common portal.6. It  is  requested  that  suitable  trade  notices  may  be  issued  to  publicize  the  contents  of  this circular.7.Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.