Smart use of section 70 of Cgst Act Using Section 70 GST to tackle IT related problems on GST Network Padmavati (Petitioner before Bom HC in TRAN 1 matter), had tried to file TRAN 1 on 27.12.2017 but could not due to the system error.
Smart use of section 70 of Cgst Act
Using Section 70 GST to tackle IT related problems on GST Network
Padmavati (Petitioner before Bom HC in TRAN 1 matter), had tried to file TRAN 1 on 27.12.2017 but could not due to the system error. Lacking adequate knowledge of computer systems, Padmavati had not saved screenshots of system glitches.
22 letters had been sent to GST Network on this Tran 1 issue, but to no avail. When there was no response at all, Padmavati approached the Bombay HC. Before the High Court, the Commissioner kept on insisting that taxpayers must produce proof of technical glitch and attempt to file the form.
Padmavati then filed an application under Section 70 of CGST and Maharashtra GST Act to respective commissioners to summon evidence from GSTN about user activity of Padmavati on 27.12.2017. Under section 70 commissioner has powers of the civil court to summon evidence from any person.
Padmavati mentioned in the application that Padmavati has no screenshot of the attempt to file Form Tran 1. However, It had annexed affidavit of the employee which said that he had logged into GST Network on 27.12.2017 as well as uploaded details of C forms on that date and afterwards the system got stuck.
Acting on this application, Commissioner forwarded the same to GST Network which confirmed that on 27.12.2017 the user had tried to submit Form Tran 1. However the same was stuck due to an error relating to incorrect registration number. However, the error report produced before Court showed that the registration number was, in fact, correct and that the system error generated was wrong.
Moral of the story – Section 70 of GST Act is a tool in your hands to summon information from GST Network. It can also be used to summon information from your Internet Service Provider if he is not co-operating. Use it parallelly while going under the IT Redressal Mechanism circular. If you don’t have proof of technical glitch or attempt to file the TRAN1 form.
CA PINKI KEDIA
FCA, DISA, LLB