GST-How to file ITC rectification application u/s 16(5)/(6)?

The Central Government, based on the recommendations of the 54th GST Council, issued Notification No. 22/2024-CT on October 8, 2024. This notification offers relief to taxpayers by allowing them to file applications for rectifying demand orders related to the incorrect availment of the Input Tax Credit (ITC). Taxpayers can now submit rectification applications for cases where ITC was mistakenly claimed under Section 16(4) of the CGST Act but has become eligible under the newly introduced sub-sections (5) and/or (6) of Section 16.

On January 7, 2025, GSTN released an advisory announcing that the "Application for Rectification of Order" feature is now available on the GST portal for ITC rectifications!

Let’s understand the filing process!

Step-by-Step Process for Filing Application for Rectification of ITC

Access the www.gst.gov.in URL and log in to the portal with valid credentials.

1.  Click Dashboard > Services > User Services > My Applications

2. Select "Application for rectification of order" in the Application Type field and click the NEW APPLICATION button.

4) Enter details in the displayed fields as mentioned in the following steps:

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a. In the Order Number field, select the order number of the order that you wish to rectify.

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b. Based on your selection, latest Order Issue Date and Tax Period fields will get auto-populated.

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c. In the Grounds for rectification field, enter the reason, "Application of rectification of order under Notification No. 22/2024-Central tax dated 08.10.2024".

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d. Click Choose File to upload details in Annexure A as notified vide Notification No. 22/2024, dated 8th October 2024, in support of your application. This would be a mandatory step.

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e. Enter Verification details. Select the declaration checkbox and select the name of the authorized signatory.

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f. Based on your selection, the fields Designation/Status and Date (current date) displayed below will get auto-populated. Enter the name of the place where you are filing this application.

g. Complete the filing process by clicking on PREVIEW and FILE.

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Conclusion

Filing an ITC rectification application under Section 16(5)/(6) of the CGST Act is crucial to ensure accurate compliance with GST regulations and safeguard your rightful tax credits. 

Businesses can efficiently resolve these issues without incurring penalties or interest by understanding the legal provisions, adhering to deadlines, and following a structured approach to filing rectification applications. 

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