Rectification of GST Orders for Wrongful Input Tax Credit Availment
Key Points:
- Extension of Time Limit: The Ministry of Finance, through Circular No. 237/31/2024-GST dated 15-10-2024, has retrospectively extended the time limit for availing input tax credit under Section 16(4) of the CGST Act.
- Rectification of Orders: Taxpayers who have been impacted by orders under Section 73 or 74, or appellate orders under Section 107 or 108, that wrongly denied input tax credit, can now apply for rectification of these orders.
- Special Procedure: Notification No. 22/2024-CT dated 8-10-2024 introduces a special procedure for rectification.
- Deadline: Taxpayers can file rectification applications within six months from the issuance of the notification, i.e., up to April 15, 2025.
Implication:
This notification provides a window for taxpayers to rectify GST orders that wrongly denied them input tax credit. It’s crucial for taxpayers who believe they have been wrongly denied ITC to review the relevant circular and notification and file their rectification applications before the deadline.
Note: This information is based on the provided text and should not be taken as legal advice. Taxpayers should consult with tax professionals for specific guidance on their situation.
HIGH COURT OF PUNJAB & HARYANA
Doublelife Rubber Ind.
v.
Union of India
Sanjeev Prakash Sharma and SANJAY VASHISTH, JJ.
CM-19961-CWP-2024
CWP-14569 of 2024 (O & M)
CWP-14569 of 2024 (O & M)
DECEMBER 10, 2024
Chetan Jain, Adv. for the Petitioner. Ms. Ridhi Bansal, Jr. Standing Counsel and Ms. Sidhi Bansal, Adv. for the Respondent.
ORDER
CM-19961-CWP-2024
Sanjeev Prakash Sharma, J.- Application for placing on record written statement on behalf of respondents No.1 and 2 is allowed. Written statement is taken on record. Registry is directed to place the same at appropriate place.
CWP-14569-2024 (O&M)
1. Along with reply circular issued by the Ministry of Finance, dated 15.10.2024, has been placed on record, clarifying the issue regarding implementation of the provisions of sub-Sections (5) and (6) of Section 16 of the Central Goods and Services Tax Act, 2017 (for short ‘CGST Act’), which has been inserted vide the Finance Act, 2024 with retrospective effect from 01.07.2017. As per the aforesaid circular, time limit to avail input tax credit under the provisions of sub-Section (4) of Section 16 of the CGST Act, has been extended retrospectively. Resultantly, it has been clarified that in cases where action has been taken under Sections 73 or 74 of the CGST Act or orders have been passed in appeal under Section 107 or Section 108 of the CGST Act, holding wrong availment of the input tax credit, the concerned tax payer has been allowed to move application for rectification of such order.
2. As per the special procedure laid down under Section 148 of the Act as notified vide notification No.22/24 dated 08.10.2024, the taxpayers would be allowed to move application for rectification within six months from the date of issuance of notification i.e. 15.10.2024, thus, upto 15.04.2025 rectification application can be moved. It would be apposite to quote para 3.5 of notification dated 15.10.2024, which reads as under:-
Where order under section 73 or section 74 of the CGST Act has been issued but no appeal against the said order has been filed with the Appellate Authority, or where the order under section 107 or section 108 of the CGST Act has been issued by the Appellate Authority or the Revisional Authority but no appeal against the said order has been filed with the Appellate Tribunal:
In such cases, where any order under section 73 or section 74 or section 107 or section 108 of the CGST Act has been issued confirming demand for wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such input tax credit is now available as per the provisions of sub-section (5) or subsection (6) of section 16 of the CGST Act, and where appeal against the said order has not been filed, the concerned taxpayer may apply for rectification of such order under the special procedure under section 148 of the CGST Act notified vide Notification No. 22/2024 – Central tax dated 08.10.2024, within a period of six months from the date of issuance of the said notification.
3. Keeping in view the above, we dispose of this writ petition and allow the petitioner to move an application accordingly. It is expected that if any such application for rectification is moved, the same shall be decided keeping in view the provisions of sub-Sections (5) and (6) of Section 16 of the CGST Act, 2017. The writ petition is accordingly disposed of.
4. All pending misc. application(s) also stand dismissed.