GUIDELINES FOR FILING/REVISING FORM TRAN-1 & TRAN-2

The Hon’ble Supreme Court of India has provided a one-time opportunity to all the aggrieved taxpayers to file Form TRAN-1/TRAN-2 and claim their transitional input tax credit in GST system. In compliance of the Hon’ble court’s directive, the facility for filing TRAN-1/ TRAN-2 or revising the earlier filed TRAN-1/TRAN-2 on the GST common portal by aggrieved taxpayers have been made available by GSTN from 01.10.2022, and as per the court’s instruction shall be available to all aggrieved taxpayers till 30.11.2022.

The Hon’ble Supreme Court has passed a judgment in the matter of Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-32710/2018 wherein Hon’ble Apex Court held:

The Apex Court directed the GST Network to reopen the common portal for filing of TRAN-1 and TRAN-1 for the period of 2 months, i.e., 01.09.2022 to 31.10.2022. The time for opening the portal was further extended by 4 weeks vide Miscellaneous Application No.1545-1546/2022 in SLP(C) No. 32709-32710/2018.

Any aggrieved taxpayer was directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed a writ petition before the High Court or not or whether the case of the taxpayer has been decided by the Information Technology Grievance Redressal Committee (ITGRC).
GSTN has to ensure that no technical glitches arise during this period.
The concerned GST officers shall verify the veracity of credit transitions within 90 days and shall pass the appropriate orders on merits after granting the appropriate reasonable opportunity to the taxpayer.
Thereafter, the credit will start reflected in the Electronic Credit Ledger of the taxpayer.
GST Council may also issue appropriate guidelines to the field formations in scrutinising the claims if required.

Points to be taken care of while filing TRAN-1 & TRAN-2

During the revision process for TRAN-1/TRAN-2, taxpayers will be able to download earlier filed forms to see what data they have filed and what changes are needed.At the time of filing/revising TRAN-1/TRAN-2, The applicant shall also upload a declaration on the common portal given in Annexure-2.

Further, 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 notified earlier.

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 period-wise forms. Where GST TRAN-2 is filed for more than one tax period, then in the column ‘Tax Period’, the applicant shall mention the last month of the consolidated period for which the claim is being made.

Document Verification after submitting the form

After filing FORM TRAN-1/TRAN-2, the applicant must submit the hard copy along with Annexure ‘A’ and a copy of TRANS-3 to the jurisdictional officer within seven days.
Applicants are advised to keep all the requisite documents/records/returns/invoices, in support of their claim of transitional credit, ready for making the same available to the concerned tax officers for verification.
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. For verification of the claim of transitional credit, the applicant may be required to provide the necessary documents.
A jurisdictional tax officer will pass an appropriate order on merits following a reasonable opportunity for the applicant to be heard.

Procedure of filing GST TRAN-1 and TRAN-2

Option of filing TRAN-1 and TRAN-2 is not live on the GST portal w.e.f 01.10.2022 and an aggrieved taxpayer can file these forms by the following procedure:

Option of filing TRAN-1 and TRAN-2 is appearing at the following path post-login:
Services>Returns>Transition Forms

On the landing page, taxpayers will have the have 3 tabs on the top namely TRAN-1, TRAN-2, and Upload Documents.
Please note that the TRAN forms are enabled and the default filing status of TRAN forms for all taxpayers is now visible as “Not Filed”. The status “Not Filed” only implies that TRAN Forms are not filed in the new window.

GST TRAN-1

While filing TRAN-1, the very first option a taxpayer has to answer is “Whether all the returns required under existing law for the period of six months immediately preceding the appointed date have been furnished”

The taxpayer has to answer it as “Yes/No”.

GSTN has advised taxpayers to be very careful while selecting options. If ‘Yes’ is selected then all tables of TRAN-1 shall open.

However, if the taxpayers select ‘No’, then the system would not allow the taxpayers to fill in details in the following tables:

- Table 5: Amount of tax credit carried forward in returns filed under existing laws.
- Table 8: Details of transfer of CENVAT credit for registered person having centralised registration under existing law (section 140(8))

The taxpayers should ensure that there are no saved records in Table 5 & Table 8 of TRAN-1 forms before selecting the “No” option. Selecting an option of Yes / No contradicting the data filed / not filed in Tables 5 and 8 of TRAN-1 respectively may result in denial of credit by the officer examining the details of the form filled.

TRAN-1 can be filed directly or through a JSON file or CSV File. Once the complete form is filed, the taxpayer can download the complete TRAN-1 details added by them by clicking on the button „DOWNLOAD TRAN-1 DETAILS’.

Taxpayers are advised to download the filled TRAN form in an Excel file and verify the details before finally submitting Form TRAN-1 as this is the last option available.

In the case of revised TRAN-1, taxpayers are required to file the complete form with all the required details and not the differential values (i.e. the difference between originally claimed credit and credit being claimed now).
It is pertinent to note that if the submitted forms are not filed with DSC or EVC then the submitted forms would be considered as Not Filed as it would be unsigned forms.
Functionality to DOWNLOAD EARLIER FILED TRAN-1 forms will be made available shortly.

GST TRAN-2

The taxpayer can file the entire claim in one consolidated FORM GST TRAN-2, instead of filing the claim tax period-wise.
TRAN-2 form shall be made available only if the taxpayer has filed TRAN-1 and has made a declaration in table 7 of TRAN-1.
In case of revising Form TRAN-2, The taxpayers are required to fill in the complete details afresh.
Data can be entered in the form either directly on the portal or in case of substantial data, data can be entered in “Excel Template” and uploaded on the portal through JSON File.
Filed TRAN-2 can be downloaded for review by clicking on “Download TRAN-2 Details” and taxpayers are advised to download the Excel file to verify the details before finally submitting the same.
The taxpayers, who have filed TRAN-2 earlier, can download the earlier filed TRAN-2 form by clicking on DOWNLOAD EARLIER FILED TRAN-2 button.