GST Transition Credit: Guidelines for Filing TRAN-1 & TRAN-2

2025-03-03 06:37:13 02March

02March

GST Transition Credit: Guidelines for Filing TRAN-1 & TRAN-2 – CBIC Circular No. 180/12/2022-GST

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 180/12/2022-GST to provide guidelines for filing or revising TRAN-1 and TRAN-2 forms. This follows the Supreme Court’s order in the Union of India vs. Filco Trade Centre Pvt. Ltd. case, allowing taxpayers a one-time opportunity to claim or revise transitional credit.This blog highlights the key directives and the process for filing/revising TRAN-1 and TRAN-2.<hr><h2>1. Background: Supreme Court's Order on Transitional Credit</h2><ul><li>The Supreme Court’s order (22nd July 2022 & 2nd September 2022) directed GSTN to reopen the portal for filing or revising TRAN-1 and TRAN-2 for two months.</li><li>This applies to all taxpayers, whether or not they had previously filed a writ petition or approached the ITGRC (Information Technology Grievance Redressal Committee).</li><li>The portal was opened from 1st October 2022 to 30th November 2022.</li></ul><hr><h2>2. Key Guidelines for Filing/Revising TRAN-1 & TRAN-2</h2><ul><li>Who Can Apply?<ul><li>Taxpayers who could not file TRAN-1/TRAN-2 earlier.</li><li>Those who want to revise an already filed TRAN-1/TRAN-2.</li></ul></li><li>Submission Process:<ul><li>Forms must be filed on the GST portal and verified using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).</li><li>A PDF declaration (Annexure A) must also be uploaded along with the claim.</li><li>Taxpayers claiming credit under Table 7A of TRAN-1 must also upload TRANS-3.</li></ul></li><li>Restrictions on Claims:<ul><li>No claims for transitional credit shall be filed in Table 5(b) & 5(c) for C-Forms, F-Forms, and H/I-Forms issued after 27th December 2017.</li><li>TRAN-2 must be filed as a consolidated claim (not period-wise).</li></ul></li><li>Verification & Submission:<ul><li>After submitting TRAN-1/TRAN-2, a self-certified copy must be submitted to the jurisdictional tax officer within 7 days.</li><li>Taxpayers must keep all necessary records, invoices, and supporting documents ready for verification.</li></ul></li></ul><hr><h2>3. Important Points to Note</h2><ul><li>One-Time Opportunity:<ul><li>This is the final chance to claim or revise transitional credit.</li><li>Once the “Submit” button is clicked, no further edits can be made.</li></ul></li><li>Who Should Not File Again?<ul><li>Taxpayers who had already filed TRAN-1/TRAN-2 successfully and do not need any changes.</li><li>Those whose claims were partially or fully rejected should pursue appeals instead.</li></ul></li></ul><hr><h2>4. Post-Submission Process</h2><ul><li>Verification by Tax Officers:<ul><li>Jurisdictional tax officers will verify claims and may request supporting documents.</li><li>After verification, they will pass an order on the eligibility of credit.</li><li>Approved transitional credit will be reflected in the taxpayer’s Electronic Credit Ledger (ECL).</li></ul></li><li>Appeal Process for Rejected Claims:<ul><li>If a taxpayer's claim is rejected, they can pursue appeals under Section 107 of CGST Act.<a href="https://cms.plasament.com/storage/cir-180-08-2022-cgst.pdf">cir-180-08-2022-cgst</a>  </li></ul></li></ul>