Tamil Nadu GST Issues Detailed Guidelines for Rectification of Errors u/s 161 of TNGST Act

The Commissioner of State Tax under the Government of Tamil Nadu issued Circular No. 4/2025 dated 16th May 2025, regarding rectification powers under Section 161 of the TNGST Act, 2017.

What is Section 161 of the TNGST Act?

Section 161 provides tax authorities the power to correct “errors apparent on the face of the record” in any decision, order, notice, certificate, or any other document issued under the Act

This correction can be done:

• Suo motu (on their own)
• On request by a taxpayer
• On suggestion by any GST officer (state or central)

Key Features of Section 161 Explained

Time Limits

• Rectification request must be submitted within 3 months from the date of the original order.
• Rectification must be completed within 6 months, except in the case of:
  • Clerical or arithmetical errors (no time limit).

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Natural Justice

If the rectification results in adverse consequences for the taxpayer (e.g., enhanced demand), the proper officer must:

• Issue a notice
• Offer the taxpayer an opportunity to be heard
• Follow fair procedure before finalizing the rectification

What Qualifies as an “Error Apparent on the Face of Record”?

As clarified in the circular (and supported by the Madras High Court ruling in Vishaka Exports [2022]):

“An error apparent on the face of record is one that is self-evident, obvious, and does not require complex interpretation, argument, or re-evaluation of facts.”

Examples of Valid Rectifiable Errors:

1. Tax already paid via DRC-03 but not considered in the demand order.
2. Arithmetic mistakes in tax calculation or misclassification under tax heads (CGST/SGST/IGST).
3. Wrong “Place of Supply” affecting tax treatment (e.g., wrongly marked as interstate).

What Cannot Be Rectified Under Section 161?

Not Permissible:

• Introduction of new evidence or facts not on record.
• Errors in legal interpretation (e.g., application of limitation, discretionary penalties).
• Change of opinion by the officer.
• Matters have already been appealed.
• Subsequent court decisions (to be implemented via revision, not rectification).
• Facts missed during adjudication are not rectifiable unless they were part of the original record.

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Administrative Instructions to GST Officers

For Proper Officers:

• Use rectification powers strictly within the legal scope.
• Maintain written reasons before initiating suo motu rectifications.
• Avoid misusing Section 161 to amend substantive conclusions or quasi-judicial findings.
• Upload rectification orders in Form GST DRC-08.

For Deputy and Joint Commissioners:

• Review all rectification orders for compliance.
• Initiate appeals under Section 107 if any rectification is erroneous.
• Use Section 108 (Revision) if appeal deadlines have lapsed.
  
  

For Systems Wing:

• Develop MIS tools to track rectification pendency and safeguard revenue.

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