The Supreme Court granted the finance ministry another 30-day delay for the opening of the GST single portal. To "give full effect" to its ruling from July 22, which had permitted taxpayers to claim cumulative ITC collected in the pre-GST indirect tax regime in 60 days ending October 31, it also directed the GSTN to operate the portal for 60 days from October 1 to December 31.

The appeal from the finance ministry asking for an extension of time was allowed by a bench chaired by Justice SA Nazeer. "Given the importance of tax collection for the government, only urgent IT system upgrades are made, and generally, introducing new capabilities like TRAN-1 is avoided" (period of 7th to 24th every month IT changes are avoided). As a result, the GSTN has a deployment window from the 25th to the 6th of every cycle, according to the ministry.

The order of events in TRAN 1 and TRAN 2 filings has changed, according to the government, in accordance with the Supreme Court order. This now includes a different business procedure in some respects, and the new development is required both at the front office (taxpayer facing front) and back office (tax officer facing front). Additional Solicitor General R Venkataraman argued that there have been numerous changes to the opening of GST portal system over the past five years that need to be taken into account in order to make sure the new IT development is compatible with the current state of the IT system and in accordance with the Supreme Court order.

The estimated value of the real tax credit that is due to taxpayers is between Rs400 and Rs500 crore. It is a credit that taxpayers have carried forward from the former indirect tax regime.

These taxpayers were denied credits because they failed to submit Form GST TRAN-1 by the deadline outlined in Rule 117 of the Central Goods and Services Tax Rules, 2017, in order to carry forward collected input tax credits from the pre-GST indirect tax regime.

They had asked for a delay in the deadline for petition submission for the opening of GST portal because the CGST provision had set a 90-day deadline for submitting the declaration form TRAN-1 to claim the credit.

The top court had requested on July 22 that the government grant taxpayers a 60-day window from September 1 to October 31, 2022, while it was deliberating on almost 400 appeals. The GSTN is also responsible for making sure there are no technical difficulties during this time.

Additionally, it granted officers a 90-day window to check the merits of the credit claim and issue the necessary orders after giving the assessees a chance to respond. The CBIC department (Central Board of Indirect Taxes and Customs) was asked to provide its field officers with the necessary instructions, and it also noted that the credit had to be entered into the electronic ledger.