Key Summary of Notification No 22/2024–CENTRAL TAX Dated 8th Oct 2024
NOTIFICATION NO. 22/2024–CENTRAL TAX [S.O. 4373(E)/F. NO. CBIC-20006/20/2023-GST], DATED 8-10-2024
This notification outlines a special procedure for rectifying orders issued under Sections 73, 74, 107, or 108 of the Central Goods and Services Tax (CGST) Act, 2017.
Key Points:
Applies to specific cases: This procedure applies only to cases where:
- An order was issued confirming a demand for wrong availment of input tax credit.
- The wrong availment was due to contravention of Section 16(4) of the CGST Act.
- The input tax credit is now eligible under Section 16(5) or 16(6) of the CGST Act.
- No appeal has been filed against the original order.
Application Process:
- Registered persons can file an application for rectification electronically on the GST portal.
- The application must be accompanied by information as per Annexure A of the notification.
Time Limit: The application must be filed within six months from the date of issuance of this notification (October 8, 2024).
Rectification Authority: The authority that issued the original order will also be responsible for rectifying it.
Time Limit for Rectification: The rectifying authority must issue the rectified order within three months from the date of receiving the application.
Uploading Summary: The rectifying authority must upload a summary of the rectified order electronically in the specified forms (GST DRC-08 or GST APL-04).
Scope of Rectification: Rectification is limited to the demand for input tax credit that was wrongly denied based on the contravention of Section 16(4) of the CGST Act, but is now eligible under Sections 16(5) or 16(6).
Principles of Natural Justice: The rectifying authority must adhere to principles of natural justice while making the decision.
In essence: This notification provides a simplified and expedited process for registered persons to rectify orders where input tax credit was previously denied due to the contravention of Section 16(4) of the CGST Act, but is now eligible under subsequent amendments to the Act.