GST TRAN-1 Filing Relief Granted to Taxpayer Blocked by Portal Glitch

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Case Name

M/s Desire Lifestyle vs. Union of India & Others

Court Name: High Court of Judicature for Rajasthan, Jodhpur Bench

Case No.: S.B. Civil Writ Petition No. 18912/2019

Decision on: 19th December 2019

Key Takeaways

1. Technical glitches on the GST portal are a valid reason to seek an extension for filing GST TRAN-1 forms.

2. Proof is mandatory — the petitioner must demonstrate that they actually tried to upload the form before 27.12.2017 and failed due to a portal fault.

3. GST Council plays a gatekeeper role — they must verify the claim and issue a certificate/recommendation before the form can be accepted.

4. Strict timelines were set — the petitioner had 15 days to apply to the GST Council, and the GST Council had 3 weeks to respond.

5. Deadline for filing — the TRAN-1 form had to be filed by 31st December 2019 (or any extended period).

6. This case follows an earlier precedent — the court relied entirely on its earlier decision in Jodhpur Truck Pvt. Ltd. vs. Union of India & Ors.

Issue

Can a taxpayer be allowed to file GST TRAN-1 after the deadline if they were prevented from doing so due to a technical glitch on the GST common portal?

In simple terms — should M/s Desire Lifestyle get a second chance to claim their transitional input tax credit just because the government’s own portal failed them? The court said yes, but with conditions.

Facts

• M/s Desire Lifestyle is a business that needed to file GST TRAN-1, which is a form that allows businesses to carry forward their pre-GST input tax credits into the new GST regime.
• The deadline to file this form was 27th December 2017.
• The petitioner claims they tried to upload the form before the deadline, but the GST common portal had a technical fault/glitch that prevented them from doing so.
• Because of this failure, they lost the opportunity to claim their transitional credit.
• They approached the Rajasthan High Court by filing S.B. Civil Writ Petition No. 18912/2019 seeking relief.
• The respondents (Union of India and others) pointed out that this issue was already covered by an earlier judgment of the same court.

Arguments

Petitioner’s Side (M/s Desire Lifestyle):

• They argued that they were unable to file GST TRAN-1 due to a technical glitch on the GST portal — something completely outside their control.
• While they agreed the issue was in principle covered by the earlier Jodhpur Truck Pvt. Ltd. judgment, they felt that additional directions/clarifications were needed to protect their specific interests and avoid future difficulties.

Respondent’s Side (Union of India & Others):

• The respondents’ counsel, Mr. Rajvendra Saraswat, submitted that the case was squarely covered by the earlier decision in Jodhpur Truck Pvt. Ltd. vs. Union of India & Ors. [S.B. Civil Writ Petition No. 15221/2019] dated 01.11.2019.
• In other words, the government’s position was that the existing judgment already addressed this situation and no new directions were needed.

Key Legal Precedents

Jodhpur Truck Pvt. Ltd. vs. Union of India & Ors. [S.B. Civil Writ Petition No. 15221/2019]

Decided on: 01.11.2019 — Rajasthan High Court, Jodhpur

This is the cornerstone precedent of the entire case. Here’s how it was applied:

• The court in the present case did not re-examine the legal issues from scratch. Instead, it simply followed and applied the directions already laid down in the Jodhpur Truck Pvt. Ltd. judgment.
• Specifically, the court referred to para no. 12 of the Jodhpur Truck Pvt. Ltd. judgment, which laid down three requirements that a taxpayer must satisfy to be allowed to file GST TRAN-1 after the deadline:

1. The taxpayer must prove they tried to upload the form before 27.12.2017.
2. The failure must have been due to a technical fault/glitch on the common portal.
3. A certificate/recommendation from the GST Council must be obtained.

• All the directions in the present case were modelled on this earlier judgment.

Judgment

The Petitioner (M/s Desire Lifestyle) got relief, though it was conditional relief — not an outright win.

What Did the Court Order?

The court disposed of the writ petition with the following specific directions:

1. Permission to file TRAN-1: The respondents (tax authorities) must allow the petitioner to submit the GST TRAN-1 form online, but only if the petitioner can furnish proof that they tried to upload it before 27.12.2017 and failed due to a technical glitch on the portal.

2. Three conditions must be met: If all three requirements from para 12 of the Jodhpur Truck Pvt. Ltd. judgment are satisfied, the TRAN-1 form shall be accepted, provided it is filed by 31st December 2019 or any extended period.

3. Apply to GST Council within 15 days: The petitioner must submit an application to the GST Council for the required certificate/recommendation, along with relevant evidence and a certified copy of this order, within 15 days from the date of the order.

4. GST Council to respond in 3 weeks: If the petitioner’s claim is found to be correct, the GST Council must issue the recommendation/certificate within 3 weeks of receiving the application.

5. If GST Council rejects the claim: If the GST Council believes the petitioner is not entitled to the certificate, they must pass a reasoned order and communicate it to the petitioner.

6. Right to appeal preserved: The petitioner is free to take appropriate legal remedy against any adverse order from the GST Council.

7. Stay application disposed of: The stay application filed alongside the writ petition was also disposed of accordingly.

Signed by: (DINESH MEHTA), J

FAQs

Q1: What is GST TRAN-1 and why is it so important?

GST TRAN-1 is a transitional form that businesses had to file when India switched to the GST regime. It allowed them to carry forward their existing input tax credits (from the old tax system like VAT, excise, etc.) into the new GST system. Missing this filing meant losing potentially significant tax credits.

Q2: Why couldn’t M/s Desire Lifestyle just file the form on time?

According to their claim, the GST common portal had a technical glitch that prevented them from uploading the form before the deadline of 27th December 2017. This was not their fault — it was a system failure.

Q3: What are the three conditions from the Jodhpur Truck Pvt. Ltd. judgment that must be met?

The judgment refers to para 12 of the Jodhpur Truck Pvt. Ltd. judgment which sets out three requirements, but the full details of those three conditions are in that earlier judgment (not reproduced in full here). Based on the context, they relate to: (1) proof of attempt to file, (2) failure due to technical glitch, and (3) GST Council certification.

Q4: What happens if the GST Council refuses to give the certificate?

If the GST Council rejects the petitioner’s claim, they must give brief written reasons for the rejection. The petitioner then has the right to challenge that order through appropriate legal remedies.

Q5: Is this judgment binding on other taxpayers in similar situations?

This judgment itself is a short order that follows the earlier Jodhpur Truck Pvt. Ltd. precedent. While it is not a landmark judgment on its own, it reinforces the principle that taxpayers who were genuinely prevented by portal glitches from filing TRAN-1 deserve a fair opportunity to do so.

Q6: What was the deadline to file the TRAN-1 form under this order?

The court directed that the form must be filed by 31st December 2019, or any extended period that may be granted.

1. Mr. Saraswat, learned counsel for the respondents No.1 and 2, submits that the case is squarely covered by a decision of this Court dated 01.11.2019, rendered in the case of Jodhpur Truck Pvt. Ltd. Vs. Union of India & Ors. [S.B. Civil Writ Petition No.15221/2019].

2. Learned counsel appearing for the petitioner submits that though in-principle, the issue is covered by the aforesaid judgment, but certain more directions/clarifications are required to be given so as to ward off any difficulty(ies) to the petitioner-assessee.

3. In view of the above, the present writ petition is disposed of in terms of the judgment rendered by this Court in the case of Jodhpur Truck Pvt. Ltd. (supra) and following directions are issued:

1. The respondents shall permit the petitioner to submit online GST TRAN-1 form, subject to furnishing a proof that he had tried to upload GST TRAN-1 form prior to 27.12.2017 and such attempt failed due to technical fault/glitch on the common portal. Needless to mention that petitioner will be required to submit a certificate/recommendation issued by GST Council in

this regard.

2. In case all the three requirements enumerated in

para no.12 of the judgment of Jodhpur Truck Pvt. Ltd.

(supra) are met/satisfied, the petitioner’s online GST

TRAN-1 form shall be accepted, of course, if it is filed

by 31.12.2019 or extended period (if any).

3. For the purpose aforesaid, the petitioner may

submit an application before the GST Council to issue

the requisite certificate/recommendation, alongwith

requisite particulars, evidence and a certified copy of

the order instant, within a period of 15 days from

today. If the petitioner’s assertion is found correct, the

GST Council shall issue the recommendation/certificate

to the petitioner within a period of three weeks from

placement of such application and certified copy of this

order.

4. In case the GST Council is of the view that

petitioner is not entitled for certificate/

recommendation, they shall pass an order giving brief

reasons and communicate the same to the petitioner –

assessee.

5. Needless to observe that the petitioner shall be

free to take appropriate remedy against such order.

4. The stay application also stands disposed of accordingly.

(DINESH MEHTA),J