CBIC Issues Guidelines for verifying the Transitional Credit

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for verifying the transitional credit in light of the order of the Supreme Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd.

The Supreme Court has directed that the common portal be opened for filing prescribed forms for availing of transitional credit through TRAN-1 and TRAN-2 for two months, from October 1, 2022, to November 30, 2022, for the aggrieved registered assessee. The applicant's transitional credit claim shall be credited in his electronic credit ledger to the extent permitted by the jurisdictional tax officer through order after the necessary verifications. As per the Court's order, the verification has to be carried out within 90 days after the completion of the window of two months (i.e., within 90 days from 01.12.2022 up to 28.02.2023).

To ensure consistency in the implementation of the Supreme Court's directions across field formations, the Board, in exercising the powers conferred by Section 168 (1) of the CGST Act, 2017 issued the guidelines for verifying the transitional credit.

The Board stated that the jurisdictional tax officers can access the TRAN-1/TRAN-2 filed/revised by the applicant on their back office systems. A self-certified downloaded copy of TRAN-1/TRAN-2 filed/revised by the applicant shall also be made available to the jurisdictional tax officer by the applicant.

"GSTN will also issue a separate advisory for entering the details on the portal by the tax officers," the circular read.

It is the responsibility of the Zonal Principal Chief Commissioner/Chief Commissioners of Central Tax and Chief Commissioners/ Commissioners of Commercial Taxes of various states/UTs to regularly monitor the progress. The timelines mentioned in the Supreme Court's order dated 22.07.2022 and 02.09.2022 are strictly adhered to by the field formations.

Circular No. 182/14/2022-GST

Date: 10.11.2022

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