Delhi Dept of Trade and Taxes releases Instruction for Rectification of Assessment Orders with Errors Apparent on the Face of Record u/s 161 of Delhi GST Act [Read Instruction]

The Delhi Department of Trade and Taxes has issued instructions for rectifying assessment orders with apparent errors under Section 161 of the Delhi Goods and Services Tax Act, 2017. The move comes in response to numerous representations highlighting the challenges faced by taxpayers and dealers, emphasizing the need to streamline rectification processes and reduce unnecessary litigation.

Several representations have prompted the Delhi Trade and Taxes Department to address the rectification of demand orders issued by zonal and field formations. Recognizing the potential benefits of rectification in easing taxpayer difficulties, the department emphasizes the importance of resolving clerical and arithmetical errors apparent on the face of records.

The instruction underscores the provisions of Section 161 of the GST Act, allowing any authority to rectify errors apparent on the face of records within three months from the date of issue. The provision aims to streamline the rectification process, provided it does not exceed six months from the issuance date and pertains solely to clerical or arithmetical errors.

Field formations are advised to strictly follow the letter of the law and adhere to the provisions outlined in Section 161. Recording Reasons for Rectification: Suo-moto rectifications should be initiated only after recording the reasons in writing.

Registered persons applying for rectification must do so within three months of the order, with rectification orders (in FORM GST DRC-08) passed within six months. Notably, rectification powers are limited to mistakes apparent on the face of records, excluding debatable legal points or undisputed questions of fact.

Further, Rectification may not be carried out if an appeal has been preferred by the registered person to higher appellate forums.

Cases Considered for Rectification:

The department identifies specific scenarios eligible for limited purposes rectification under Section 161, including cases where the demand amount has been fully deposited but not considered during the issuance of the demand order and instances of arithmetical errors in the demand order.

Field formations are urged to meticulously examine the provisions of the Delhi GST Act, 2017, and exercise due diligence when invoking rectification powers, ensuring a judicious application for the specified cases.

To Read the full text of the Instruction CLICK HERE

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