The Central Government, acting on the recommendations of the 54th GST Council, issued Notification No. 22/2024-CT on October 8, 2024. This notification introduced a significant amendment allowing registered persons to file applications for rectification of demand orders related to wrongful availment of Input Tax Credit (ITC) under specific conditions.
Key Provisions of Notification No. 22/2024-CT
According to the notification, registered persons who have received orders confirming demands for the wrongful availment of ITC, due to violations of sub-section (4) of Section 16 of the Central Goods and Services Tax (CGST) Act, can now seek rectification if:
- Such ITC is rendered eligible under the newly added sub-sections (5) and/or (6) of Section 16 of the CGST Act.
- The demand orders issued under Section 73 or Section 74 can be reassessed and rectified upon submission of an application.
Functionalities Available on the GST Portal
To facilitate this rectification process, the GST Portal has introduced a dedicated functionality. Taxpayers can now file applications for rectification of demand orders by following these steps:
- Login to the GST Portal: Access the GST Portal using the registered credentials.
- Navigate to Application for Rectification: Go to Services > User Services > My Applications.
- Select Application Type: Choose “Application for Rectification of Order” in the Application Type field.
- Initiate a New Application: Click on the “NEW APPLICATION” button to begin the process.
A hyperlink is also provided on the portal to download the proforma in Annexure A, which is available in Word format. This proforma must be completed and uploaded along with the application. It requires the following details:
- Information about the demand order issued for wrongful ITC availment.
- Justification for eligibility under sub-section (5) and/or (6) of Section 16 of the CGST Act.
Importance of this Rectification Facility
This rectification mechanism aims to provide relief to taxpayers who were previously penalized for ITC availment under sub-section (4) of Section 16 but are now eligible for the same under the amended provisions. By enabling the filing of applications for rectification, the government seeks to:
- Ensure compliance with updated GST provisions.
- Mitigate undue financial and procedural hardships for taxpayers.
- Promote a fair and transparent tax administration framework.
Conclusion
The introduction of this rectification functionality demonstrates the government’s commitment to aligning tax procedures with legislative amendments. Taxpayers are encouraged to take advantage of this facility to rectify demand orders and streamline their compliance with GST laws.
For further assistance, taxpayers can visit the GST Portal or reach out to the GST Helpdesk for guidance.
Source: https://www.gst.gov.in/newsandupdates/read/568
