Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued a corrigendum dated October 25, 2024, to Circular No. 237/31/2024-GST, which was originally released on October 15, 2024. The corrigendum provides further clarification on the implementation of provisions under sub-sections (5) and (6
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The corrigendum aims to clarify ambiguities in a previous circular regarding sub-sections (5) and (6) of Section 16 of the CGST Act, 2017, ensuring taxpayers and GST officers have a clear understanding of how to implement these provisions for Input Tax Credit (ITC).
The corrigendum primarily addresses sub-sections (5) and (6) of Section 16 of the CGST Act, 2017, which deal with restrictions on ITC claims and the reversal of ITC in specific scenarios.
Sub-section (5) relates to restrictions on ITC claims for goods or services used partly for personal consumption, and it specifies that for financial years 2017-18 to 2020-21, ITC can be claimed in a return filed up to 30th November 2021.
Sub-section (6) covers situations where a registered person's registration is cancelled and subsequently revoked. It outlines the conditions under which they can claim ITC for invoices or debit notes that were not restricted at the time of cancellation.
Generally, no refund is available for tax paid or ITC reversed on account of contravening sub-section (4) of Section 16, if ITC is now available under sub-sections (5) or (6). However, this restriction does not apply to the refund of pre-deposits made for appeals that are decided in favour of the taxpayer.
Taxpayers against whom orders confirming demands for wrong ITC availment (due to contravention of sub-section (4) of Section 16) have been issued, but where such ITC is now available under sub-sections (5) or (6), and no appeal has been filed, can apply for rectification of the order under the special procedure notified by Notification No. 22/2024 - Central tax, within six months of the notification's issuance.
CAclubindia
