TaxTMI 
TaxTMI 
Clarifying the issues regarding implementation of provisions of sub-section (5) and sub-section (6) in section 16 of TNGST Act, 2017
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....ommendations of the GST Council. Hence, the corresponding pari-materia circular is issued as below :- 1. Reference is invited to sub-section (5) and sub-section (6) of section 16 of the Tamil Nadu Goods and Services Tax Act, 2017 (hereinafter referred to as the "TNGST Act") inserted in section 16 of the TNGST Act, with effect from the 1st day of July, 2017, vide section 6 of the Tamil Nadu Goods and Services Tax (Third Amendment) Act, 2024 (Act No.3 of 2025) published in Tamil Nadu Government Extraordinary Gazette [Issue No. 11] dated 08.01.2025, whereby the time limit to avail input tax credit under provisions of sub-section (4) of section 16 of TNGST Act has been retrospectively extended in certain specified cases. 1.2 Sub-section (4), sub-section (5) and sub-section (6) of section 16 of the TNGST Act are reproduced below for ready reference: "(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is e....
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..... 11] dated 08.01.2025 (reproduced below), that no refund of any tax paid or the input tax credit reversed shall be granted on account of the said retrospective insertion of sub-section (5) and sub-section (6) of section 16 of the TNGST Act. "36. No refund shall be made of all the tax paid or the input tax credit reversed, which would not have been so paid, or not reversed, had section 6 of this Act been in force at all material times." 1.4 Besides, vide Tamil Nadu Government G.O. (Ms.) No. 8, Commercial Taxes and Registration (B1) Department, dated 09.01.2025, a special procedure for rectification of orders has been notified under section 148 of the TNGST Act, to be followed by the class of taxable persons, against whom orders under section 73 or section 74 or section 107 or section 108 of the TNGST Act have been issued confirming demand for wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the TNGST Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the TNGST Act, and where appeal against the said order has not been filed. ....
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....ll take cognizance of sub- section (5) or sub-section (6) of section 16 of the TNGST Act, inserted retrospectively with effect from 01.07.2017, and pass appropriate order under section 73 or section 74 of the TNGST Act. 3.3 Where order under section 73 or section 74 of the TNGST Act has been issued and appeal has been filed under section 107 of the TNGST Act with the Appellate Authority but no order under section 107 of the TNGST Act has been issued by the Appellate Authority: In such cases, the Appellate Authority shall take cognizance of sub-section (5) or sub-section (6) of section 16 of the TNGST Act, inserted retrospectively with effect from 01.07.2017, and pass appropriate order under section 107 of the TNGST Act. 3.4 Where order under section 73 or section 74 of the TNGST Act has been issued and Revisional Authority has initiated proceedings under section 108 of the TNGST Act, but no order under section 108 of the TNGST Act has been issued by the Revisional Authority: In such cases, the Revisional Authority shall take cognizance of sub-section (5) or sub-section (6) of section 16 of the TNGST Act, inserted retrospectively with effect from 01.07.2017, and pass app....
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....rvices > View Additional Notices/Orders ii. Additional Notices and Orders page is displayed. Click the View hyperlink to go to the Case Details screen of the issued Notice/Order. iii. Case Details page is displayed. The NOTICES tab is selected by default. To submit Rectification Request against the Revision Order issued to you by the Revisional Authority, select the ORDERS tab and click the "Initiate Rectification" link. 3.5.2 While filing such application for rectification of order, the taxpayer shall upload along with the application for rectification of order, the information in the proforma in Annexure A of the said notification, containing inter-alia the details of the demand confirmed in the said order of the input tax credit wrongly availed on account of contravention of sub- section (4) of section 16 of the TNGST Act, which is now eligible as per sub- section (5) and/or sub-section (6) of section 16 of the TNGST Act. 3.5.3 Such application for rectification shall be dealt by the proper officer who had passed the order for which the said rectification application has been filed. The said officer shall take a decision on the said a....
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....11] dated 08.01.2025, will not apply to the refund of an amount paid as pre-deposit by the taxpayer as per sub-section (6) of section 107 or sub-section (8) of section 112 of the TNGST Act, at the time of filing of an appeal, where such appeals are decided in favor of the said taxpayer. 5. It is to be noted that the rectification application of an order issued under section 73 or section 74 or section 107 or section 108 of the TNGST Act, can be filed under the special procedure notified vide Tamil Nadu Government G.O. (Ms.) No. 8, Commercial Taxes and Registration (B1) Department, dated 09.01.2025, only in cases where the issue or one of the issues on which the demand has been confirmed in the said order, pertains to wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the TNGST Act, and where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the TNGST Act. In cases where no such issue is involved and a taxpayer requires to file an application of rectification of an order, such rectification application can be filed by the taxpayers only under the provis....