16(4) time limit

[VENU K]

The department has passed all orders relating to 2019-2020 under Sec 73 denying benefit of extended time period proposed in the budget for 16(4) saying

" Though clause 114 of the Finance Bill proposed an amendment in Sec 16 no notification is issued till date of this order and the recommendations of the 53rd GST Council are yet to be made fully effective. Therefore, I do proceed further on the basis of prevailing provisions as per the Act/Rules."

They have no option because the time limit to pass an order is expiring on 31st August 2024 so they have to anyway pass the order.

Now , what should the tax payer do -

Wait for the notification (Is there a chance of it coming within 3 months is another question) and then go for a rectification ?

File an Appeal ?

AI Summary

Section 16 time limit uncertainty risks recovery; taxpayers may await notification or file appeal to protect procedural rights.
Orders under Section 16 were issued denying an extended time limit benefit because no notification made the Finance Act amendment effective; taxpayers must choose between awaiting notification and seeking rectification or filing an appeal within the three month period to preserve rights, balancing the risk of recovery or ITC attachment, appeal pre deposit costs, and potential administrative guidance or circulars that affect stay and adjustment of pre deposits.