GST UPDATE

????Desk of CA. Praveen Sharma Series-593????

S.O. 4373(E).—Under the powers given by Section 148 of the CGST Act, 2017, the Central Government, following the GST Council's recommendations, introduces a special procedure for rectifying orders related to wrong availment of Input Tax Credit (ITC). 

?This applies to registered persons who received orders under Sections 73, 74, 107, or 108 for ITC claimed in violation of Section 16(4), but where such ITC is now eligible under Section 16(5) or 16(6).

Key Points of the Notification

?Eligible persons must file an electronic application on the common portal within six months from the notification date to rectify the order.

They must submit the application along with details in the specified proforma (Annexure A).

?The authority who issued the original order will review and decide on the rectification request within three months.

Rectified orders will be uploaded in either FORM GST DRC-08 or GST APL-04, depending on the section under which the original order was issued.

?Rectification is limited to cases where ITC was wrongly availed due to Section 16(4) but is now allowed under Section 16(5) or 16(6).

If rectification negatively impacts the person, the authority will adhere to principles of natural justice.

Annexure A Details:

?The applicant must provide their GSTIN, legal name, trade name (if any), and details of the order for which rectification is sought.

?They must list details of tax demand confirmed, the applicable financial years, and provide a breakdown of taxes, interest, and penalties.

Declaration and Verification

?The applicant must declare that no appeal is pending and that the information is accurate. Incorrect declarations may void the application and lead to recovery actions.

CA. Sharma Praveen

+91-9871530610