Transitional ITC – A Never Ending Saga

M/s. Brand Equity Treaties Ltd¹ & many other judgments have allowed transitional ITC inspite of non-filing/incorrect filing of FORM GST TRAN-1 on the following grounds:

• Disallowing ITC would lead to violation of Article 300A of the Constitution of India.
• Rules have acted far beyond the scope of the act and hence such arbitrary timelines implied by the rules should be set aside and the registered person should be allowed to carry forward transitional ITC.
• GST is in "trial & error" phase and FORM GST TRAN-1 could not be uploaded due to technical glitches in GST portal for which the registered person should not be punished.
• Procedural timelines for TRAN-1 are directory and not mandatory