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1. Implementation of Provision of section 16(5) and 16(6) of CGST Act 2017 Section 16(4) of CGST Act is reproduced in this circular. This provision is related to registered person can claim the ITC for invoice and debit note up to 30th November following the end of financial year to which invoice or debit note pertains or date of furnishing annual return whichever is earlier. However, section 16(4) will not apply if ITC related to invoice or debit note for the financial year 2017-18 was claimed in the period from 20-10-2018 to 20-04-2019 and its supplier has uploaded corresponding invoices in GSTR-1 by 11-04-2019.  Section 16(5) says if ITC related to invoice and debit note for the FY 2017-18, 2018-19, 2019-20 and 2020-21 is claimed on or before 30-11-2021, the provison of section 16(4) will not apply in such case.  Section 16(6) states Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked by any order, either under section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or court and where availment of input tax credit in respect of an invoice or debit note was not restricted under sub-section (4) on the date of order of cancellation of registration, the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under section 39, (a) filed up to thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or (b) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration, whichever is later.”

2. Implementation of Provision of section 16(5) and 16(6) of CGST Act 2017 (Cont…) No refund of any tax paid or input tax credit reversed shall be allowed in the contravention of section 16(4) where such ITC is now available under the section 16(5) and 16(6) of CGST Act,2017. [“However, it is clarified that said restriction on refund under section 150 of the Finance (No. 2) Act, 2024 will not apply to the refund of an amount paid as pre-deposit by the taxpayer as per sub-section (6) of section 107 or sub-section (8) of section 112 of the CGST Act, at the time of filing of an appeal, where such appeals are decided in favor of the said taxpayer] (This Paragraph added through Corrigendum to this circular] .  Taxpayers whose ITC were denied because they did not comply with section 16(4) condtion (as explained above) and order u/s 73,74,107 or 108 were issued which confirm that the ITC claimed was wrong and demand for recovery was raised. Now with the change in section 16(5) and 16(6), ITC is now allowed which earlier denied. Taxpayer can rectify this situation by following specified procedure under Notification No 22/2024. The new Procedure is only for taxpayer who did not file appeal against earlier order in case of demand related to wrong availment of ITC.

3. Let’s understand Section 16(6) with example:-

4. GST Advisory on Providing Pre-filled GSTR-3B from January 2025

5. 3 Years deadline to file GST Return applicable from 2025

6. Update on GST Tribunal Much aviated Notification issued for GST Tribunal with Area Jurisdiction.

7. Introduction of GSTN e-Services App GSTN is pleased to inform the launch of the new GSTN e-Services app, which replaces the old e-Invoice QR Code Verifier App. This app offers the following features:  Verify e-Invoices: Scan the QR code to verify the B2B e-Invoices QR code and check the live status of the Invoice Reference Number (IRN).  GSTIN Search: Search for GSTIN details using the GSTIN or PAN. Return Filing History: View the return filing history for a GSTIN.  Multiple Input Methods: Input search details using text, voice, or scan functions.  Result Sharing: Share search results via the app The app would soon be available on the Google Play Store and App Store. No login is required to use the app. A detailed manual will also be shared here shortly. GST Advisory-dated 02-10-2024

8. Proper Entry of RR No./Parcel Way Bill (PWB) Numbers in EWB system Format for Entering the RR No./PWB No.

9. Biometric-Based Aadhaar Authentication and Document Verification for GST Registration

10. Procedure for Rectification of Orders Related to Wrong Availment of ITC  The Government has introduced a special procedure for registered taxpayers who received an order u/s 73,74,107 or 108 of the CGST Act,2017 related to wrongly claiming ITC due to not following section 16(4) of the act. However, if the ITC is now allowed under section 16(5) or section 16(6) of the Act, and no appeal has been filed against the order then the taxpayer can follow this special process to fix those orders.  Section 16(5) pertains to claim the ITC on Invoice and debit note for the FY 2017-18, 2018-19, 2019-20 & 2020-21 up to 30-11-2021.  Section 16(6) pertains to claim of ITC of the invoices or debit notes issued between cancellation and revocation of cancellation of registration in prescribed manner.  The taxpayers have 6 months from the date this notification is issued to submit an application electronically through the GST portal. This application will request the correction of an earlier order that confirmed the wrong availment of ITC.  In short, it allows taxpayers to rectify the previous mistakes regarding ITC if the credit is now allowed by the law, provided they have not filed an appeal yet.

11.  When the taxpayer submits an application to correct the order about wrongly availed ITC, they must also upload the required information in a specific format i.e. Annexure-A with their application. (Format of Annexure-A provided in Notification)  The officer who originally issued the order will be responsible for reviewing and rectifying it. This officer will issue rectified order within 3 months from date of application filed. Once the rectification is made, the officer will upload a summary of the corrected order electronically: 1. Form GST DRC -08 will be used if the original order was issued under section 73 or 74 of CGST Act. 2. FORM GST APL -04 will be issued if original order was issued under section 107 or 108 of CGST Act.  The rectification will apply to cases where the ITC was previously claimed incorrectly due to not following section 16(4) of CGST Act but is now allowed u/s 16(5) and 16(6) of CGST Act,2017.  If rectification negatively impacts the taxpayer ( e.g it increased their liability) the tax officer must follow the principles of natural justice, meaning they must provide the taxpayer with fair opportunity to present their case before making any final decision. GST Notification No.22/2024 -Central tax - Dated 08-10-2024 Procedure for Rectification of Orders Related to Wrong Availment of ITC( Cont …)

12. Procedure for Rectification of Orders Related to Wrong Availment of ITC( Cont …)

13. Waiver and Reduction of Late Fees for GSTR-7 Filing Under Section 47

14. The option to issue a consolidated invoice is no longer available.

15. Timelimit provided to issue an invoice in case of RCM and purchase from URD

16. Mandatory Electronic Filing of Monthly Returns for Tax Deducted at Source under

17. From 01-11-2024,No interest if return filed after the proceeding-initiated u/s74A

18. Procedure for closing proceeding after payment u/s 73,74A and 129 of CGST Act,2017

19. GST Advisory on Invoice Management System Applicability

20. Advisory on GSTR-9 & 9C