[Opinion] Avail One-time Opportunity to claim the missed out Transitional Credit in GST

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  • 2 Min Read
  • By Taxmann
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  • Last Updated on 26 November, 2022

GST Transitional Credit


GST Law contains detailed provisions to carry forward the input tax credit earned by the GST Registered Persons [“Registered Person“] before 1st of July, 2017. Such credit [left out credit] was to be carried forward/claimed in GST Forms Tran-1 and Tran-2 [T1 and T2] to be filed on GST portal ‘before 27.12.2017’. For the GST Registered Persons who could not carry forward/claim left out credit or who could not correctly carry forward/claim left out credits have been granted a one-time opportunity under the orders of honorable Supreme Court of India.

Details are:

“In accordance with the above referred directions of Hon’ble Supreme Court, vide order dated 22.07.2022 in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd. , SLP(C) No. 32709-32710/2018 read with their order in in Miscellaneous Application No.1545-1546/2022 in SLP(C) No. 32709-32710/2018 the facility for filing TRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the common portal by an aggrieved registered assessee will be made available by GSTN during the period from 01.10.2022 to 30.11.2022.”

”Registered Persons’ might not have carried forward/claimed ‘left out credit/’correct left out credit before 27.12.2017. Now they may claim left out credit which is a one-time opportunity and should not be missed; otherwise it will have financial impact. Once ”Registered Persons’ files T1/T2 or revises the T1/T2 filed earlier on the common portal, no further opportunity to again file or revise T1/T2, subsequently, will be available to them.

Guidelines for Registered Persons for filing TRAN-1/TRAN-2 or revising earlier filed TRAN-1/TRAN-2

1. There may be a situation that Registered Persons did not file declaration in FORM GST TRAN-1/TRAN-2 [T1/T2], now they may file T1/ T2.

2. There may also be a situation that they had earlier filed TRAN-1/TRAN-2, but due to any left out credit in those forms, there is a need to revise earlier filed TRAN-1/TRAN-2. In such a case ”Registered Person’ will be able to download previously filed T1/T2 from the GST Portal, facility to revise T1/T2 is made available by GST portal.

3. GST portal is presently open for filling new T1/T2 and revising old T1/T2 w.e.f. 01.10.2022 and will remain open up to 30.11.2022.

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