Delhi GST Department issues Instructions for Rectification of Orders

On 1^st March 2024, the Delhi GST Department issued the instructions for rectification of assessment orders. This is the result of agitation being carried out by the Tax Professionals in front of the Delhi GST Office due to which the Delhi GST Department has raised this first of its kind instructions in India. The power to rectify the order has been laid down in Section 161 of the DGST Act read with the sub rule 7 of Rule 142 of the DGST Rules 2017.

Now let’s analyze the instructions to understand the provisions: –

1. Only those orders or decisions or notice, which have been passed by the Proper Officer, which has errors apparent on record, shall be rectified whether on their own motion or where such error is being brought into attention by the officer appointed under this act or any officer appointed under the CGST act or by the person against whom the order has been passed.
2. The limit limit for filing the Rectification request has been decided as 3 months from the passing of such order or decision.
3. The Proper Officer shall have to pass the Rectification order within 6 months from the passing of the original Order by passing the Form DRC 08.
4. The Department has laid down the certain points which need to be taken care of while filing the Rectification: –

• When the Rectification is being filed suo-moto, then the proper reason for filing such rectification shall be recorded in writing.
• Time limits

Filing the Rectification request – 3 months from the passing

Passing the Rectification order – 6 months from the passing

• It is worth mentioning that only those orders in which the mistakes are apparent on the face of record, only those matters shall be considered. In those cases, where there are further representation of facts or interpretation of law are required, then for those cases, the Rectification procedure cannot be opted. Also, in those cases where the Registered persons
• Even where the appeals have been filed by the Registered Person then the Rectification process cannot be opted.
• The Department has specifically mentioned the 2 cases in which the limited proceeding of Rectification may be opted:-
  • Where amount of demand has been deposited via DRC 03 and informed to the Proper Officer but the same has not been taken into account by the Proper Officer while passing the Order.
  • Where there is arithmetical error i.e. calculation error / head error while passing the order.

CONCLUSION

While reviewing the Instructions, it is pertinent to note that the remedies have not been given to the persons who have submitted the arguments but have not been taken care of while passing the order. The remedial action is focused on only those orders for which the demand in question have been passed and deposited by the Registered Person but the same has not been considered by the Proper Officer or where there is arithmetical error while determining the demand.

To access the Instructions, click here