Page 93 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] NELCO LTD. v. UNION OF INDIA 51
clicks on the Reopen button, then the status of TRAN-1 is changed to Reopen.
The taxpayer then fills up the respective sections of the TRAN-1 Form and then
enters details under various tables such as Table 5A, 5B, 7A, 8 etc. The taxpayer
then saves TRAN-1 and verifies the entered values. After that, the TRAN-1 is
submitted on GST Portal. After its submission, TRAN-1 credit is calculated based
on the values in the form and entries are made to the electronic input tax credit
(ITC) ledger. Then the taxpayer is required to authenticate TRAN-1 by attaching
digital signature using and file TRAN-1 Form. Then the filing process is com-
plete. Thereafter the entries of the amount being posted in the Electronic ITC
Ledger can set off liabilities in GSTR-3B. The credit of TRAN-1 is credited and
posted in ledgers for use to set off liabilities when the taxpayer “submits” TRAN-
1 Form. This is the method followed by the taxpayer.
62. The Respondents noted the existence of technical difficulties in the
filing of TRAN-1 and incorporated Rule 117(1A). Rule 117(1A) has been inserted
with effect from 10 September 2018. Rule 117(1A) reads as under :
Rule 117 : Tax or duty credit carried forward under any existing law or
on goods held in stock on the appointed day (Chapter-XIV : Transitional
Provisions)
* * *
(1A) Notwithstanding anything contained in sub-rule (1), the Commis-
sioner may on the recommendations of the Council, extend the date for
submitting the declaration electronically in FORM GST TRAN-1 by a fur-
ther period not beyond 31st March, 2019, in respect of registered persons
who could not submit the said declaration by the due date on account of
technical difficulties on the common portal and in respect of whom the
Council has made a recommendation for such extension.
* * *
This Rule provides that the Commissioner may, on the recommendations of the
Council, extend the date for submitting the declaration electronically in FORM
GST TRAN-1 by a further period not beyond 31 March, 2019, regarding regis-
tered persons who could not submit the said declaration by the due date because
of technical difficulties on the common portal and regarding whom the GST
Council has made a recommendation for such extension.
63. First, the time-limit was 31 March, 2019. Now, with further exten-
sion, it is extended to 31 March, 2020. However, for the extended period to apply,
certain criterion has to be satisfied. The extension applies to the submission of
GST TRAN-1 to be made electronically. It applies only to those registered per-
sons who could not submit their declaration by the due date under Rule 117(1)
because of technical difficulties. The technical difficulties have to be the ones ref-
erable to the common portal of GST, and last, it in whose cases the Council has
made a recommendation for an extension.
64. In the GST Council Meeting held 10 March, 2018, a grievance re-
dressal mechanism was set up to address the issue. This mechanism was called
IT Grievance Redressal Cell. The IT-Grievance Redressal Cell consists of three
members, namely - CEO (GSTN), DG (Systems) GBEC and a third member from
any State nominated by Secretary. GST Council, GSTN, Central and State Gov-
ernments appointed nodal officers to address the problem a taxpayer faces due
to the technical difficulties.
GST LAW TIMES  7th May 2020  93