This circular provides detailed guidelines for verification of transitional input tax credit claims filed or revised in FORM TRAN-1 and TRAN-2 pursuant to the directions of the Hon’ble Supreme Court in the Filco Trade Centre Pvt. Ltd. case.

It explains that, in compliance with the Supreme Court’s orders, the GST common portal was opened for a limited period to allow all aggrieved registered persons to file or revise TRAN-1/TRAN-2, irrespective of earlier litigation or ITGRC outcomes. The transitional credit claimed is to be verified by the jurisdictional tax officer and credited to the electronic credit ledger only to the extent found admissible. Such verification must be completed within 90 days from the closure of the filing window, after granting reasonable opportunity of being heard to the taxpayer.

The circular lays down a structured verification mechanism, including responsibilities of jurisdictional and counterpart (Central/State) tax officers where claims involve both CGST and SGST/UTGST components. It prescribes coordination through nodal officers and sharing of verification reports in a specified format. Detailed guidance is provided in annexures for verifying different tables of TRAN-1 and TRAN-2, covering checks on carried forward credit, capital goods credit, stock-related credit, goods in transit, and distributed credit, with safeguards against double or ineligible credit.