Step by Step procedure for Rectification of GST
Orders under Notification No. 22/2024
By Yogesh Verma (CS/LLB) / 2 min read / GST Article
The Central Board of Indirect Taxes and Customs (CBIC) has
introduced Notification No. 22/2024, dated October 8, 2024, which provides a
special procedure for rectification of GST orders. This measure aims to assist
taxpayers who inadvertently availed input tax credit (ITC) in violation of
Section 16(4) of the GST Act but can now claim it under Sections 16(5) or
16(6). This article offers a detailed understanding of the notification and a
step-by-step guide for filing rectification applications.
Background
Section 16 of the GST Act governs the eligibility and
conditions for availing ITC. Violations under subsection 16(4), such as late
claims or procedural lapses, often lead to orders under Sections 73, 74, 107,
or 108, confirming tax demands. Notification No. 22/2024 offers a reprieve to
taxpayers who meet eligibility criteria for ITC under updated provisions,
allowing them to rectify prior orders without resorting to appeals.
Key Provisions of Notification No.
22/2024
1.
Eligibility:
o Taxpayers against whom orders have been passed under
Sections 73, 74, 107, or 108.
o Cases where the ITC, previously deemed ineligible, is now
allowable under Sections 16(5) or 16(6).
o No appeal filed against the said orders.
2.
Procedure:
o Applications for rectification must be filed electronically
on the GST portal within six months from the notification date.
o Along with the application, taxpayers must upload relevant
details in the prescribed Annexure A.
3.
Authority
for Rectification:
o The officer who issued the original order will review and
decide on the rectification application.
o Rectified orders must ideally be issued within three months
of application receipt.
4.
Types of
Cases Covered:
o ITC wrongly availed due to Section 16(4) violations but now
valid under Sections 16(5) or 16(6).
5.
Natural
Justice:
o Where rectifications adversely impact taxpayers, authorities
must adhere to principles of natural justice.
Step-by-Step Process for Filing Rectification
Applications
To streamline compliance, the following procedure has been
laid out for taxpayers:
Step 1: Access the GST Portal
Step 2: Navigate to Application Form
- On
the dashboard, select: Services > User Services > My Applications.
Step 3: Select Application Type
- Choose
"Application for rectification of order" from the dropdown menu
and click on "NEW APPLICATION."
Step 4: Enter Relevant Order Details
- Select
the specific order for rectification.
- Fields
such as "Order Issue Date" and "Tax Period" will
auto-populate based on your selection.
Step 5: Provide Grounds for
Rectification
- State
the reason for rectification as per Notification No. 22/2024.
Step 6: Upload Annexure A
- Attach
the duly filled Annexure A as per the notification. This includes:
- Basic taxpayer details (GSTIN, legal name, etc.).
- Order reference and details of the tax demand.
- Revised ITC eligibility details categorized under
Sections 16(5) and 16(6).
Step 7: Verify Application Details
- Complete
the verification process:
- Select the declaration checkbox.
- Provide the authorized signatory's details.
- Enter the place of filing.
Step 8: Final Submission
- Preview
the application and click on "FILE" to complete the process.
Annexure A: Essential Information
The proforma in Annexure A requires detailed inputs,
including:
- Specifics
of the tax demand raised in the order.
- Revised
ITC eligibility under subsections 16(5) and 16(6).
- Declaration
affirming accuracy and compliance.
This declaration is critical, as any false statements can
render the application void and invite penalties.
Advantages of the Notification
1.
Legal
Clarity:
o Taxpayers can rectify orders without filing appeals, saving
time and resources.
2.
Simplified
Process:
o A dedicated form and structured online process ensure user
convenience.
3.
Equitable
Resolution:
o Acknowledges legitimate claims of ITC while maintaining
compliance standards.
4.
Encouragement
for Voluntary Disclosure:
o Provides relief to taxpayers willing to rectify past errors.
Important Considerations
- Timely
submission is crucial, as applications are only accepted within the
six-month window from October 8, 2024.
- Ensure
all details in Annexure A are accurate to avoid complications.
- Retain
copies of submitted documents for future reference.
Conclusion
Notification No. 22/2024 is a progressive step toward
facilitating GST compliance by offering taxpayers a chance to rectify errors
without litigation. By leveraging this provision, businesses can ensure
procedural adherence and optimize their tax positions. Taxpayers are advised to
act promptly and consult GST professionals for accurate filings.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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