High Court Notice to Revenue on GST Transitional Credit Issue
Case: Anil Kumar Singh v. Union of India
Writ Tax No.: 1901 of 2024
Date of Order: November 08, 2024
Court: Hon’ble Allahabad High Court
Background
Petitioner: Mr. Anil Kumar Singh
Issue: Claim for transitional credit of ₹30,30,368.53 was rejected due to incorrect column entry in Form GST TRAN-1.
Challenge:
The GST portal provided no option to appeal against the rejection.
Manual appeal submission was not accepted.
Request to reopen the portal for rectification was denied.
Legal Issue
Can a claim for transitional credit in Form GST TRAN-1 be rejected solely due to a clerical error, and can a taxpayer be denied an appeal due to a lack of options on the GST portal?
High Court Observations
Referred to Union of India v. Bharti Airtel Ltd., 2021 (54) G.S.T.L. 257 (SC), emphasizing the need for procedural fairness in the GST framework.
Highlighted the systemic inadequacy in the GST portal, which fails to accommodate appeals for rejected transitional credits.
Issued notice to the Revenue Department to address the absence of an appeal mechanism and ensure procedural justice.
Outcome
The High Court has sought a response from the Revenue Department to resolve:
- Why transitional credit claims are rejected for minor clerical errors.
- The lack of an option on the GST portal for appealing such rejections.
Key Takeaways
Systemic Gaps in GST Portal: The inability to file appeals for transitional credit claims highlights inefficiencies in the GST framework.
Judicial Intervention: The High Court’s notice signals a critical step towards addressing procedural inequities and ensuring taxpayer rights.
Need for Reform: This case underscores the necessity of revising the GST portal to allow rectifications and appeals to prevent undue hardship for taxpayers.
Our Comments
This case reflects the broader challenges faced by taxpayers in navigating GST compliance due to technical limitations. It emphasizes the need for a user-centric and error-tolerant digital infrastructure. The High Court’s intervention is a positive step toward enhancing procedural justice and ensuring a fair tax administration system.
