HC directs the assessee to pay tax for pre-registration period in DRC-03 considering technical limitation in portal

In M/s.Joseph Tea Company ltd. v. State Tax Officer [WP(C)No. 17235 of 2020 decided on June 17, 2021] M/s. Joseph Tea Company ltd. ('the Appellant') is a registered dealer under the Kerala Value Added Tax Act ('the Kerala VAT Act'), had migrated from the Goods and Services('GST') regime and applied for registration under the Central Goods and Services Tax Act, 2017 ('the CGST Act').

Due to technical glitchesin the GST portal, the Appellant failed to obtain registration, the Appellant filed writ petition[WP(C) No.768 of 2018 decided on March 28, 2018]. An interim orderwas passed permitting the Appellant to apply for registration afresh. Accordingly, registration was granted with effect from March 09, 2018.

However, the Appellant was still not able to upload the returns for the period from July 01, 2017 to March 09, 2018. This disabled the customers of the Appellant to claim Input Tax Credit('ITC'). Thus, Court directed the department to make appropriate changes in the portal so as to enable the Petitioner to file returns and dismissed the petition.

Further, the Appellant made representations before the State Tax officer ('the Respondent')to amake appropriate changes in the portal but no steps were taken. Being aggrieved the Petitioner filed this writ petition.

The Hon’ble High Court, Kerala, directed the Respondent to provide an opportunity to the Appellant for statutory compliance for the period prior to March 09, 2018. Noted thatit is technically impossible to make changes in the GST portal to allow the Petition to file returns.

Therefore, directed the Appellant to pay tax for the period prior to March 09, 2018 along with applicable interest under Form GST DRC-03(i.e., intimation of payment made voluntarily or made against the show cause notice or statement).

Further, If such payment is effected, the recipients of the Appellant shall not be denied ITC only on the ground that the transaction is not reflected in GSTR 2A.