To,

The Office of the Deputy Commissioner

Ward No. …, …..State GST

Room No. ….., … Floor

…City

State, Pincode…..

SUBJECT – Request for more time to Reply to Notice issued dated ….. for ;   For denial of ITC under section 16(4)

Ref ID: __________

Respected Sir,

Greetings!!

1. With reference to the above-captioned subject, we, M/s __________(hereinafter referred to as ‘the company’) located at _______________ hereby bring to your kind attention that notice was issued on __________ .
2. This is in reference to the Show Cause Notice received, DIN __________, dated:__-___-2024 issued in the form ….of Goods and Services Tax Act, 2017 where you have raised the issue of denial of ITC for the Financial Year 2019-20 under section 16(4) of the GST Laws.
3. With this letter we would like to bring your attention to the decision of recently concluded 53^rdGST Council Meeting where the Council has recommended relaxation of this sub-section (4) of Section 16 for initial years. Relevant extracts of the Press Release dated 22^ndJune’2024:

Para 7. Relaxation in condition of section 16(4) of the CGST Act:

1. In respect of initial years of implementation of GST, i.e., financial years 2017-18, 2018-19, 2019-20 and 2020-21:

The GST Council recommended that the time limit to avail input tax credit in respect of any invoice or debit note under Section 16(4) of CGST Act, through any return in FORM GSTR3B filed upto 30.11.2021 for the financial years 2017-18, 2018-19, 2019-20 and 2020-21, maybe deemed to be 30.11.2021. For the same, requisite amendment in section 16(4) of CGST Act, retrospectively, w.e.f. 01.07.2017, has been recommended by the Council.

1. b) with respect to cases where returns have been filed after revocation:

The GST Council recommended retrospective amendment in Section 16(4) of CGST Act, to be made effective from July 1, 2017, to conditionally relax the provisions of section 16(4) of CGST Act in cases where returns for the period from the date of cancellation of registration/effective date of cancellation of registration till the date of revocation of cancellation of the registration, are filed by the registered person within thirty days of the order of revocation.

4. The GST Council has recommended relaxing Section 16(4). Our case falls in the category of the cases for which relaxation has been provided.
5. As you are well aware, an amendment to the GST laws is required to provide such relaxation. We are hopeful that the proposed amendments will be inserted through Union Finance Budget’2024, which is expected in the last week of July itself.
6. Considering the above-mentioned facts, we request you to kindly adjourn our case till the first week of August’2024. In our case, the last date to pass orders as per the extended date is 31^stAugust’2024. Thus, there would be ample time for you to decide the case.
7. We respectfully submit that, in light of the recent recommendations by the GST Council and the anticipated amendments to the GST laws, it would be in the interest of justice to grant us additional time to respond to the Show Cause Notice. We are committed to complying with all regulatory requirements and ensuring that our submissions are complete and accurate.
8. Prayer:
9. We kindly request you to adjourn our case till the first week of August 2024 to allow the proposed amendments to be enacted and provide us with sufficient time to prepare our detailed response.
10. We seek an opportunity for a personal hearing before any adverse order is passed against us to ensure that our submissions and supporting documents are fully considered.
11. We request the department to take into account the relaxation recommended by the GST Council in respect of Section 16(4) of the CGST Act for the initial years of GST implementation and apply the same to our case.
12. We also request that the department grants us an extension for the submission of our reply to the Show Cause Notice in line with the relaxation measures recommended by the GST Council.
13. We trust that our submissions and the enclosed supporting documents will receive your favourable consideration. We remain available for any further clarifications or information you may require.

Thanks & Regards

For ……….

Director/Authorized Signatory

Date: 02-Jul-2024

Place: New Delhi