FAQs on Rectification of Mistake under GSTNarendra Kumar

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The Tax Publishers GST--Rectification of Mistake FAQs on Rectification of Mistake under GST Narendra Kumar The present write-up seeks to elaborate the scheme of provisions of rectification of mistake under the Goods and Services Tax regime as enshrined under section 161 of the Central Goods and Services Tax Act, 2017 and rules made thereunder. 1. What are the provisions for rectification of mistake apparent on face of record? The provisions relating to rectification of errors apparent on the face of record are enshrined under section 161 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act"). Accordingly, without prejudice to the provisions of section 160, and notwithstanding anything contained in any other provisions of the Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by -- (a) any officer appointed under the Act; or (b) an officer appointed under the State Goods and Services Tax Act; or (c) an officer appointed under the Union Territory Goods and Services Tax Act; or (d) by the affected person. 2. What is the time limit for making application for rectification of mistake? The application for rectification of mistake can be filed within a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be. 3. What is the maximum time limit for passing order of rectification of mistake? The Proper Officer is allowed to do the rectification of any decision or order within six moths from the date of issue of such decision or order or notice or certificate or any other document. The said period of six months shall, however, 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. 4. Can a rectification of an order be sought after expiry of six months? In Kiran Enterprises v. State of Tripura 2021 (52) GSTL 29 (Tripura-HC), the taxpayer filed application for rectification of tax invoices issued inadvertently in its name instead of in name of its sister firm. The Department rejected the said application solely on the ground that no rectification could be done after six months except such rectification involved only a clerical or arithmetical error. The High Court observed that except in case of suit, appeal or application in Court, provisions of Limitation Act would not apply automatically to local/special statute such as Tripura State Goods and Services Tax Act, 2017 unless same expressly extended to them. Keeping in view clear stipulation made in first proviso to section 161 that no rectification shall be done after a period of six months from date of issue of order/notice/certificate/any other documents and provisions of aforesaid Act being a complete Code in itself and impliedly excluded applicability of provisions of Limitation Act, 1963, Department's rejection of rectification application could not be faulted. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Rectification of Mistake

FAQs on Rectification of Mistake under GST

Narendra Kumar

The present write-up seeks to elaborate the scheme of provisions of rectification of mistake under the Goods and Services Tax regime as enshrined under section 161 of the Central Goods and Services Tax Act, 2017 and rules made thereunder.

1. What are the provisions for rectification of mistake apparent on face of record?

The provisions relating to rectification of errors apparent on the face of record are enshrined under section 161 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act").

Accordingly, without prejudice to the provisions of section 160, and notwithstanding anything contained in any other provisions of the Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by --

(a) any officer appointed under the Act; or

(b) an officer appointed under the State Goods and Services Tax Act; or

(d) by the affected person.

2. What is the time limit for making application for rectification of mistake?

The application for rectification of mistake can be filed within a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be.

3. What is the maximum time limit for passing order of rectification of mistake?

The Proper Officer is allowed to do the rectification of any decision or order within six moths from the date of issue of such decision or order or notice or certificate or any other document.

The said period of six months shall, however, 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.

4. Can a rectification of an order be sought after expiry of six months?

In Kiran Enterprises v. State of Tripura 2021 (52) GSTL 29 (Tripura-HC), the taxpayer filed application for rectification of tax invoices issued inadvertently in its name instead of in name of its sister firm. The Department rejected the said application solely on the ground that no rectification could be done after six months except such rectification involved only a clerical or arithmetical error. The High Court observed that except in case of suit, appeal or application in Court, provisions of Limitation Act would not apply automatically to local/special statute such as Tripura State Goods and Services Tax Act, 2017 unless same expressly extended to them. Keeping in view clear stipulation made in first proviso to section 161 that no rectification shall be done after a period of six months from date of issue of order/notice/certificate/any other documents and provisions of aforesaid Act being a complete Code in itself and impliedly excluded applicability of provisions of Limitation Act, 1963, Department's rejection of rectification application could not be faulted.