Supreme Court orders directs opening the window for taxpayers to claim transitional credits

The recent ruling  in the case of Union of India vs Filco Trade Centre Private Limited* (Supreme Court) will have a wider benefits to various taxpayers of the country. Now, 60-day window to be opened to claim transitional credits. The decision of Delhi HC allowing the benefit to all the taxpayers has finally become part of the Supreme Court’s order.

The Supreme Court has directed the Central Board of Excise and Customs (CBIC) and the GST Council to open a 60-day window to allow the taxpayers to file TRAN-1 and TRAN-2 to claim the transitional credits and facilitate the clearance of the dues pending to taxpayers.

The benefit shall be available to all the aggrieved taxpayers, and not be restricted only to the writ petitioners or to those whose claims were rejected on the ground that there were no technical glitches.

The 60-day window is expected to be open from September 1 till October 30, 2022, allowing the taxpayers to apply for the transitional claims and thereafter the field formations shall have 90 days to verify the claims and pass the orders on merits in accordance with the laws.

The decision will help thousands of taxpayers across the country to claim the credit of the taxes paid under the erstwhile regime and thus had a vested right to it under GST but were denied the benefit due to technical glitches or procedural mistakes.

As per the initial estimates of the tax officials, ₹500 crores of the ‘genuine credit’ due to about 7,000 to 10,000 taxpayers is expected to be released under this window.