Filing of Application for Rectification of Order which was issued for the incorrect claim of ITC under section 16(4) of the CGST Act, but the ITC in question is now valid as per the newly inserted section 16(5) and/or section 16(6).
Application for Rectification: The Central Government, following the recommendations of the 54th GST Council, issued Notification No. 22/2024-CT on October 8, 2024, which provides an opportunity for taxpayers to file an application for rectification of demand orders related to the wrong availment of Input Tax Credit (ITC). This applies to cases where a demand order was issued for the incorrect claim of ITC under section 16(4) of the CGST Act, but the ITC in question is now valid under the newly inserted section 16(5) and/or section 16(6).
What Does Notification 22/2024-CT Entail?
As per the Notification No. 22/2024-CT, if a registered person has received a demand order for wrong ITC availment due to non-compliance with the provisions of section 16(4), but now finds that the ITC is permissible under the amended sections 16(5) and/or 16(6), they can apply to rectify such orders. This rectification process aims to provide relief to taxpayers whose previously invalid ITC claims are now considered legitimate under the new provisions.
How to File the Application for Rectification
To file an application to rectify a demand order for wrong availment of ITC, taxpayers can follow these simple steps:
- Login to the GST Portal: Visit the official GST Portal and sign in using your credentials.
- Navigate to the Rectification Application Section: After logging in, go to Services > User Services > My Applications.
- Select the Rectification Application Type: Choose “Application for Rectification of Order” in the Application Type field.
- Click on the NEW APPLICATION Button: Once selected, click on the NEW APPLICATION button to proceed.
- Download and Fill the Required Proforma: A hyperlink is available on the portal to download the Annexure A proforma in Word format. Fill in the necessary details about the demand order that relates to the wrongly availed ITC due to section 16(4).
- Upload the Annexure A: After completing the details, upload the Annexure A form when submitting the application for rectification.
Important Points to Remember
- The facility to file a rectification application is available only for cases where the demand for ITC was made under section 73/74 of the CGST Act.
- The rectification application can only be filed after the ITC is found to be eligible as per the recently introduced section 16(5) and/or 16(6) provisions.
- Ensure that all required details are accurately entered in the Annexure A before submission.
Conclusion
The introduction of Notification 22/2024-CT offers taxpayers a crucial opportunity to rectify demand orders related to wrong availment of ITC, especially when the ITC claims are now in compliance with the revised provisions of section 16(5) and section 16(6). By following the simple steps on the GST Portal, taxpayers can easily submit their rectification applications and resolve past discrepancies.
Steps in detail to file the rectification application
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