Evidence not necessary to prove technical glitch in GST TRAN-1 filing

Addressing a bunch of writ petitions, the Hon'ble High Court of Allahabad^[1] observed that there was no necessity under either the Act or the Rules to furnish evidence of attempt(s) to submit Form GST TRAN-1 or TRAN-2. Rather, this was done vide the aforesaid Circular. Consequently, such action is arbitrary and unenforceable.

It also observed that Circulars are issued to give effect to law, by making it practical and functional. However, in the instant case, the Circular travels beyond the statute. Enforcement of such Circular would result in great discrimination between taxpayers merely on the chance occurrence of being in possession of evidence to submit / revise the aforesaid Forms (especially when there is no such requirement under law).

While a taxing legislation and equity considerations may be at loggerheads, the Court cannot be unmindful of consequences relating to a merely procedural requirement. If only the taxpayers were offered a functional system, they would not have been deprived of the transition credit.

In view of the foregoing, it held that a one-time reasonable opportunity should be granted to all taxpayers (in Uttar Pradesh) to submit / revise / re-revise Form GST TRAN-1 or TRAN-2 electronically.

[1] Order dated September 15, 2021 arising from Writ Tax Nos. 872 of 2018 and 225, 477 of 2021