Transitional VAT Credit Carried to GST Not Refundable, But Recredit Permissible

• Gujarat High Court held that transitional VAT/SGST credit carried into GST through TRAN-1 cannot be refunded under Section 54(3) because the bar in Section 142(3) applies.
• Mere migration of credit to the GST regime does not make it refundable; the Department was right to reject the refund claim.
• The Court, however, allowed re-credit of the amount back into the Electronic Credit Ledger if the ITC is eligible for such restoration.
• It directed the Revenue to pass an appropriate order for re-credit under Form GST PMT-03 within 12 weeks, if required.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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