If you’ve had input tax credit (ITC) denied for previous years, there’s now a solution! The government has introduced a process to help businesses rectify adverse GST orders under Section 16(4) of the CGST Act. Here’s what you need to know:
What’s New?
Businesses can now fix denied credits for the financial years 2017-18, 2018-19, 2019-20, and 2020-21 if the credit was claimed through GSTR-3B by 30th November 2021. This new process allows taxpayers to correct their GST records for these past years.
Notification 22/2024
On 8th October 2024, Notification 22/2024 was issued, introducing a rectification mechanism. This applies to cases where no appeal has been filed and offers a chance to submit a rectification request.
How to Apply?
You have six months from the notification date (i.e., from 8th October 2024) to submit your rectification application through the GST portal. Make sure to include all the required documents when filing.
What’s the Process?
Submit the application along with the necessary documents. The officer who passed the adverse order will review and process your request within 3 months.
Take advantage of this opportunity to correct past ITC denials and ensure your records are accurate. Act now to avoid missing the deadline!