Special procedure under Delhi GST Act for rectification of order for wrong ITC availment

Special procedure notified under Delhi GST Act 2017 for rectification of order confirming demand for wrong availment of ITC.

Lt. Governor of the National Capital Territory of Delhi has notified Special procedure under Delhi Goods and Services Tax Act, 2017 for rectification of order confirming demand for wrong availment of input tax credit.

In exercise of the powers conferred under the section 148 of the Delhi Goods and Services Tax Act, 2017 (the Act) the Lieutenant Governor of National Capital Territory of Delhi has notified the following special procedure for rectification of order against a registered person against whom an order u/s 73 or section 74 or section 107 or section 108 of the said 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 Act, but where such input tax credit is now available as per the provisions of subsection (5) or sub-section (6) of section 16 of the said Act, and where appeal against the said order has not been filed, namely:

1. The said person shall file, electronically on the common portal, within a period of six months from the date of issuance of this notification, an application for rectification of an order issued under section 73 or section 74 or section 107 or section 108 of the said Act, as the case may be, confirming demand for wrong availment of input tax credit, on account of contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the said Act, and where appeal against the said order has not been filed.

2. The said person shall, along with the said application, upload the information in the proforma in Annexure A

3. The proper officer for carrying out rectification of the said order shall be the authority who had issued such order, and the said authority shall take a decision on the said application and issue the rectified order, as far as possible, within a period of three months from the date of the said application.

4. Where any rectification is required to be made in the order referred to in paragraph 1 and, the said authority has issued a rectified order thereof, then the said authority shall upload a summary of the rectified order electronically –

(i) in FORM GST DRC-08, in cases where rectification of an order issued under section 73 or section 74 of the said Act is made; and

(ii) in FORM GST APL-04, in cases where rectification of an order issued under section 107 or section 108 of the said Act is made.

5. The rectification is required to be made only in respect of demand of such input tax credit which has been alleged to be wrongly availed in contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or subsection (6) of the said section 16.

6. Where such rectification adversely affects the said person, the principles of natural justice shall be followed by the authority carrying out such rectification.

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