CBIC Notifies Special Mechanism for Rectification of Orders on Wrong ITC Availment u/s 16 of CGST Act

The CBIC has issued Notification No. 22/2024-Central Tax, dated October 8, 2024, to notify a special procedure for rectifying orders related to wrongful availment of input tax credit (ITC). This mechanism allows registered taxpayers to correct past errors under specific conditions. Eligible taxpayers must submit an electronic application on the GST portal within six months from the notification date. The proper officer will process the rectification request and issue a rectified order within three months. This rectification applies solely to ITC wrongly availed due to contraventions of sub-section (4) of Section 16, now allowable under sub-sections (5) or (6).