Circular No. 182/14/2022-GST
Page 1 of 14
F. No. CBIC-20021/04/2021-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the 10th of November, 2022
To,
The
Principal
Chief
Commissioners/
Chief
Commissioners/
Principal
Commissioners
/Commissioners of Central Tax (All)
Madam/Sir,
Subject: Guidelines for verifying the Transitional Credit in light of the order of the Hon’ble
Supreme Court in the Union of India vs. Filco Trade Centre Pvt. Ltd., SLP(C) No. 32709-
32710/2018, order dated 22.07.2022 & 02.09.2022-reg.
Attention is invited to the directions issued by the 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. The operative portion of the judgment is as follows:
“1. Goods and Service Tax Network (GSTN) is directed to open common portal for filing
concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two
months i.e. w.e.f. 01.09.2022 to 31.10.2022.
2. Considering the judgments of the High Courts on the then prevailing peculiar
circumstances, any aggrieved registered assessee is directed to file the relevant form or
revise the already filed form irrespective of whether the taxpayer has filed writ petition
before the High Court or whether the case of the taxpayer has been decided by Information
Technology Grievance Redressal Committee (ITGRC).
3. GSTN has to ensure that there are no technical glitch during the said time.
4. The concerned officers are given 90 days thereafter to verify the veracity of the
claim/transitional credit and pass appropriate orders thereon on merits after granting
appropriate reasonable opportunity to the parties concerned.
5. Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit
Ledger.
6. If required GST Council may also issue appropriate guidelines to the field formations in
scrutinizing the claims. The Special Leave Petitions are disposed of accordingly. Pending
applications, if any, also stand disposed of.”
1.2.
Subsequently in Miscellaneous Application No. 1545-1546/2022 in SLP(C) No. 32709-
32710/2018, Hon’ble Supreme Court vide order dated 2nd September, 2022 has inter-alia ordered as
follows:
Circular No. 182/14/2022-GST
Page 2 of 14
“The time for opening the GST Common Portal is extended for a further period of four
weeks from today.
It is clarified that all questions of law decided by the respective High Courts concerning
Section 140 of the Central Goods and Service Tax Act, 2017 read with the corresponding
Rule/Notification or direction are kept open.”
2.
As is clear from the above, the Hon’ble Court has directed that the common portal be opened
for filing prescribed forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two
months from 01.10.2022 to 30.11.2022 for the aggrieved registered assessee (henceforth, referred as
‘applicant’). The Transitional Credit claimed by the applicant shall be credited in his electronic credit
ledger to the extent allowed by the jurisdictional tax officer through an order after carrying out
necessary verifications. As per the Hon’ble Court’s order, the said verification has to be carried out
within 90 days after completion of the above window of two months, i.e. within 90 days from
01.12.2022 i.e. up to 28.02.2023.
2.1
It is to be noted that while allowing the applicant to file/revise TRAN-1/TRAN-2 during this
window of 2 months, Hon’ble Supreme Court has kept all questions of law open.
2.2
It may be mentioned that Hon’ble Supreme Court has only allowed filing of TRAN 1/TRAN-
2 or revising the TRAN-1/TRAN-2 already filed by the applicant and has not allowed the
applicant to file revised returns under the existing laws.
3.
Reference is also invited to the Board’s Circular No. 180/12/2022 dated 09.09.2022 vide
which guidelines have been issued for the applicants for filing new TRAN-1/TRAN-2 or revising the
already filed TRAN-1/TRAN-2 on the common portal.
4.
To ensure uniformity in the implementation of the directions of the Hon’ble Supreme Court
across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the
Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”), hereby issues
the following guidelines for verifying the Transitional Credit:
5. Verification of the Transitional Credit
5.1 The jurisdictional tax officers can access the TRAN-1/TRAN-2 filed/revised by the applicant
on their back office systems (which is the CBIC-AIO portal for the central tax officers, the respective
State portal for MODEL-1 States and BO portal for MODEL 2 States). Further, 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 said applicant as mentioned in Para 4.5 of Circular 180/12/2022
dated 09.09.2022.
5.2
The verification of the transitional credit shall be conducted by the jurisdictional tax officer
who will pass an appropriate order regarding the veracity of the claim filed by the applicant, based
on all the facts and the provisions of the law. In respect of TRAN-1/TRAN-2 filed/revised by the
applicant under the administrative control of the central tax authorities, such verification and
Circular No. 182/14/2022-GST
Page 3 of 14
issuance of order shall be done by the jurisdictional officer of central tax, whereas in respect of
TRAN-1/TRAN-2 filed/revised by the applicant under the administrative control of the state tax
authorities, the same shall be done by the jurisdictional officer of state tax. The jurisdictional tax
officer shall start the verification process immediately on availability of TRAN-1/TRAN-2
filed/revised by the applicant on the back office system or on receipt of self-certified downloaded
copy of the same from the applicant, whichever is earlier. It is needless to mention that principles of
natural justice shall be followed in the process of passing the order relating to allowance or
disallowance of the Transitional Credit.
5.3
The jurisdictional tax officer shall, on the basis of declaration made by the applicant in the
format specified in Annexure A to Circular no. 180/12/2022 dated 09.09.2022, and on the basis of
data available on the back office system, shall check whether the applicant had earlier filed TRAN-1/
TRAN-2 or not. In cases where TRAN-1/ TRAN-2 had already been filed by the applicant earlier,
the tax officer shall check whether there is any change from the earlier filed TRAN-1/TRAN-2 or
not. In case, there is no change from the earlier filed TRAN-1/ TRAN-2, then such claim of
transitional credit is liable for rejection by the tax officer, through a reasoned order, after providing
due reasonable opportunity to the applicant.
5.3.1 In other cases, the jurisdictional tax officer shall proceed for verification of claim of
transitional credit made by the applicant in FORM TRAN-1/TRAN-2. In this regard, in respect of
transitional credit pertaining to central tax, he may refer to the guidelines detailed in Annexure I to
this circular. In respect of verification of transitional credit pertaining to the State Tax/Union
territory Tax, the tax officer may refer to the guidelines issued by the relevant state/UT, if any.
5.3.2 There may be cases where the transitional credit claim filed/revised by the applicant may
have components of both central tax and state/UT tax. In such cases, where the applicant is under the
jurisdiction of central tax officer and where the transitional credit claimed has component of
state/Union Territory tax also, the jurisdictional central tax officer shall refer the said claim for
verification of component of state/UT tax to his counterpart state/UT tax officer. For this purpose, he
shall share the list of GSTINs/ARNs with the counterpart officer, in respect of which verification
report is needed from him, on a weekly basis, along with an intimation of the same to the nodal
officer of central tax as well as state/UT tax referred in Para 6.1 below through his official email ID
or physically. Similar action, as above, shall also be taken by the jurisdictional state/UT tax officers
in cases where the applicant is under the jurisdiction of state/UT tax officer and where the
transitional credit claimed has component of central tax also.
