Draft Application: Re-Claiming Input Tax Credit (ITC) for Previous Years Under GST Act Sections 16(4), 16(5), and 16(6)

Dated: ………………

To,
………………………………….

………………………………….

……………………………………

Subject: Application for Rectification of Order under Section 73/74/107/108 of the CGST Act, 2017, as per Circular No. 237/31/2024-GST dated 15th October 2024

Respected Sir,

This is in reference to the order issued under Section [Insert Relevant Section, e.g., 73/74/107/108] of the CGST Act, 2017, dated …………, wherein the demand for reversal of Input Tax Credit (ITC) was confirmed on account of contravention of provisions under Section 16(4) of the CGST Act.

With the issuance of Circular No. 237/31/2024-GST dated 15th October 2024 and Notification No. 22/2024 – Central Tax dated 8th October 2024, it has been clarified that retrospectively inserted provisions under sub-sections (5) and (6) of Section 16 of the CGST Act allow ITC to be availed for specified periods, subject to prescribed conditions. The circular and notification provide a special procedure for rectification of such orders where the ITC is now eligible under these provisions.

Details of the Case

1. i) Order Reference:[Insert order number and date].
2. ii) Period Covered:[Specify period, e.g., FY 2018-19, FY 2019-20].

iii) ITC Disallowed: Rs. [Insert Amount].

1. iv) Reason for Disallowance:ITC claimed beyond the due date prescribed under Section 16(4).

Grounds for Rectification

1. Eligibility for ITC as per Sub-sections (5) and (6) of Section 16:

• The above provisions, inserted retrospectively by Finance (No. 2) Act, 2024, allow ITC for invoices or debit notes pertaining to financial years 2017-18, 2018-19, 2019-20, and 2020-21, provided returns under Section 39 were filed by 30th November 2021.
• The ITC disallowed in the order pertains to such eligible invoices and is now valid as per the said provisions.

2. Compliance with Circular No. 237/31/2024-GST:

• The circular explicitly provides for rectification of orders under Section 73/74/107/108where demands were raised for ITC ineligible under Section 16(4), but which is now eligible under Section 16(5) or 16(6).

3. Absence of Fraud or Misstatement:

• The demand raised in the order is procedural and not on account of fraud, willful misstatement, or suppression of facts.

Prayer

In light of the above, I humbly request your good office to:1. Rectify the order dated ………….. under the provisions of Section 154 of the CGST Act read with Circular No. 237/31/2024-GST and Notification No. 22/2024 – Central Tax.

2. Revoke the demand for reversal of ITC and associated interest/penalty.
3. Issue a revised order reflecting the eligibility of ITC as per Section 16(5)/16(6).

Documents Enclosed

1. Copy of the order issued under Section ……….
2. Details of invoices/debit notes and ITC claimed.
3. Copy of Circular No. 237/31/2024-GSTand Notification No. 22/2024 – Central Tax.
4. Any other relevant documents as required.

We affirm that this application is filed within the stipulated timeline of six months from the issuance of Notification No. 22/2024 – Central Tax. I remain available to provide any further clarifications or information required in this regard.

Thanking you,

Yours faithfully,

…………………….

……………………..

E-mail …………………