Clarification on Implementation of 16(5)/(6), CGST Act, 2017

Notification No.: 237/31/2024-GST

Notification Date: 15th October 2024

Relevant Act / Rule: Goods and Service Tax Act, 2017

Relevant Section:

  • Section 16(5)/(6)
  • Section 73
  • Section 74
  • Section 107
  • Section 108

-The CBIC issued clarifications on implementing Sections 16(5) and 16(6) of the CGST Act, which retrospectively extend the time limits for claiming ITC from 01.07.2017. These clarifications address handling past cases involving wrong ITC claims under Section 16(4).


– For cases without demand notices or where notices were issued but no orders were passed, tax authorities should apply the new subsections. If an appeal or revision is pending, the retrospective amendments should be considered. Taxpayers can file rectification applications for past orders using a special procedure notified by Notification No. 22/2024 within six months.

 

Rectifications will be processed electronically, but no refunds will be issued for taxes already paid or ITC reversed. The special rectification process is limited to Section 16(4) contraventions.

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