CBIC issued Notifications to notified the date effecting change in rate of goods/ services, RCM on services, Interest waiver scheme under Section 128A
These Notifications are summarized as under:
A. Notification No. 21/2024-Central Tax: Notification specifies deadlines by which tax payments must be made in order to avail of the waiver of interest, penalty, or both u/s 128A:
As recommended in the 53rd Council Meeting and insertion of New Section 128A of the CGST Act vide Finance Act, 2024, for waiving of interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20.
Vide this Notification CBIC notifies dates up to which tax should be paid for waiver of interest/penalties under section 128A of CGST Act 2017. The Notification shall be effective from 01.11.2024.
Registered persons who have received notices or statements or orders referred to in clause (a), (b), or (c) of Section 128A of the CGST Act – Last date is 31.03.2025.
Registered persons who have received a notice u/s 74 in respect of the period mentioned in Section 128A(1) (For some specific cases) – 6 months from the date of redetermination order.
B. Notification No. 22/2024-Central Tax: Special procedure for rectification of certain specified orders issued under sections 73, 74, 107 or 108 of CGST Act: This notification provides a streamlined rectification process for addressing cases where the ITC, initially disallowed, is now permissible under the law, allowing taxpayers to avoid unnecessary litigation.
Process Summary:
Applicability: The procedure applies to registered persons against whom an order has been issued confirming a demand for wrongful availment of input tax credit (ITC) in violation of Section 16(4). In other words, case where ITC initially disallowed, is now available under Section 16(5) or Section 16(6), and the person has not filed an appeal against the original order.
Filing of Application: The registered person must file an application for rectification of the order electronically on the common portal. Such application for rectification is to be filed within six months from the date of the notification, and the officer must issue a rectified order within three months from the date of the application. Along with the application, the person must upload information in the prescribed Annexure A format.
Summary of Rectified Order: Once the rectification is made, the authority must upload a summary of the rectified order electronically in the relevant forms based on the section under which the original order was issued.
Opportunity for personal hearing: If the rectification process adversely affects the registered person, the principles of natural justice must be followed, ensuring that the person is provided a fair opportunity to be heard before any adverse decision is made.