As per the Notification, the Taxpayers against whom an order under sections 73, 74, 107, or 108 of the CGST Act has been passed, confirming the demand for wrong ITC availment in contravention of section 16(4), are eligible to apply for rectification.
The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification 22/2024-Central Tax, which outlines a special procedure for rectification of orders issued under sections 73, 74, 107, and 108 of the CGST Act, 2017. This procedure is relevant to registered taxpayers who have been issued orders confirming the demand for wrong input tax credit (ITC) availment due to violations of section 16(4) but now available as per sections 16(5) or 16(6). Here’s a detailed breakdown of this notification:
Key Highlights of Notification 22/2024-Central Tax:
1. Eligibility for Rectification:
Taxpayers against whom an order under sections 73, 74, 107, or 108 of the CGST Act has been passed, confirming the demand for wrong ITC availment in contravention of section 16(4), are eligible to apply for rectification.
Rectification is allowed only if the ITC is now available as per sections 16(5) or 16(6) of the Act.
No appeal should have been filed against the said order.
2. Application Procedure:
Eligible taxpayers must file an electronic application on the common GST portal within six months from the date of issuance of this notification.
Along with the application, taxpayers need to upload relevant information in the Annexure A format prescribed under this notification.
3. Role of the Proper Officer:
The officer who issued the original order under section 73, 74, 107, or 108 will be responsible for rectifying the order.
A decision on the rectification application must be made, and the rectified order should ideally be issued within three months from the application date.
4. Issuance of Summary of Rectified Order:
If rectification is approved, the officer will electronically upload a summary of the rectified order using:
FORM GST DRC-08 for orders under sections 73 or 74.
FORM GST APL-04 for orders under sections 107 or 108.
5. Scope of Rectification:
Rectifications will only address ITC demands that were initially availed under section 16(4) but are now available as per sections 16(5) or 16(6).
6. Principles of Natural Justice:
If the rectification order adversely affects the taxpayer, the proper officer must ensure that the principles of natural justice are adhered to during the rectification process.
Conclusion:
This notification provides a streamlined process to rectify past ITC-related discrepancies, ensuring compliance and easing tax administration for both taxpayers and authorities. It’s crucial for affected taxpayers to act promptly within the six-month window provided and submit accurate details for rectification.
To Access the Notification 22/2024-Central Tax Click Hera
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