GST order u/s 73

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A client received a GST order under Section 73 concerning RCM on various expenses, with a significant calculation error in the taxable amount for 'Misc. Expenses'. As the appeal deadline has passed, the primary options discussed are filing a Writ Petition with the High Court, potentially challenging the RCM applicability, or applying for rectification of the order under Section 161, which may not have a time limit for purely clerical or arithmetical errors.

CA Amit Kumar

CA Amit Kumar (Querist)
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19 February 2025 Recently one client approached me, with an order passed u/s 73 on 15.12.2023. The accountant of client did nothing when the notice was issued. Now since department hold his bank account he approached me. The order basically mentions that the taxpayer has to pay tax under RCM on Freight, Travelling & Conveyance, Misc. Expenses, Vehicle Maintenance, Sales Promotion & Advertisement for the period July 1, 2017 till 13th Oct, 2017.
There is one more error in the order, The taxable amount mentioned in order for Misc. Expenses should be 83163.9 as per calculation whereas they have mentioned it as 831639. They just removed the decimal.
Now since the time limit for appeal has been passed, what are the options available?

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
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19 February 2025 Since the order contains an apparent calculation error, i.e., a misplaced decimal point in Misc. Expenses, a Writ Petition can be filed before the jurisdictional High Court

CA Amit Kumar

CA Amit Kumar (Querist)
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20 February 2025 Thanks for the response Sir. While filing the writ petition can we also mention to not apply tax on RCM basis on Travelling & Conveyance, Misc. Expenses, Vehicle Maintenance, Sales Promotion & Advertisement for the period July 1, 2017 till 13th Oct, 2017.

ASHWANI DHANUKA

ASHWANI DHANUKA (Expert)
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20 February 2025 It depends upon the facts of the case. If you have sufficient grounds to defend urself, certainly include it

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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20 February 2025 You can apply for rectification of Order under section 161

Second Provisio of Section 161 reads as

Provided further that the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission:

So IMO, there is no time limit if its arithmetical error

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