Supreme Court Gives Businesses Two Months Window To Claim Transitional Tax Credit

July 25, 2022

In a landmark ruling that can help hundreds of GST assesses who had not been able to avail of such credits, the Supreme Court has allowed taxpayers who had missed out on transitional tax benefits when India switched to the Goods and Services Tax (GST) regime, two months to claim the benefits.

Ruling in favour of the taxpayers, the top court bench, comprising Justice Abdul Nazeer and JK Maheshwari, directed the revenue authorities to facilitate taxpayers who could not claim benefits when the country transitioned to GST from an indirect tax system, in 2017.

The apex court has allowed the taxpayers fresh filing of Tran 1 and Tran 2 forms, which had been introduced when GST was rolled out to enable taxpayers to carry forward the pre-GST-credit into the GST system.

The court said that the 60-day period will be open on the GST Network portal for the taxpayers from September 1 to October 31st to claim the transitional credit. Further, tax officials have been given 90 days to verify the veracity of the claims as well as hear the taxpayers.

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