The Tamil Nadu’s GST Circular No. 4/2025 dated May 16, 2025, outlines instructions for rectifying errors under Section 161 of the TNGST Act, 2017. Rectification can be initiated by the Proper Officer, taxpayer, or GST officials within three months of the document’s issuance. Orders must be passed within six months, except for clerical errors. Natural justice principles apply if rectification adversely affects a person. Errors must be obvious and self-evident. New facts, legal interpretations, and appeals preclude rectification. Officers are instructed to act cautiously, follow due process, and ensure compliance. Monitoring and reporting are emphasized to safeguard revenue and maintain procedural integrity.
- Purpose: The circular provides instructions on the rectification of errors under Section 161 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017.
- Rectification Process:
- Rectification can be initiated suo moto by the Proper Officer, upon request by the taxpayer, or upon notice by GST officials.
- Taxpayers can request rectification within three months of the issuance of the document.
- Rectification orders must be passed within six months of the document’s issuance, except for clerical or arithmetical errors.
- Principles of Natural Justice: If rectification adversely affects a person, the principles of natural justice must be followed, including providing an opportunity to be heard.
- Definition of “Error Apparent on the Face of Record”:
- Errors must be obvious, self-evident, and not requiring detailed investigation or argument.
- Errors should not involve new facts or interpretations of law.
- Types of Rectifiable Errors:
- Errors in demand amounts already deposited.
- Arithmetical errors in calculations.
- Incorrect mention of the place of supply.
- Non-Rectifiable Errors:
- New facts or evidence not considered in the original order.
- Errors involving points of law or discretionary decisions.
- Cases where appeals are pending.
- Instructions to Proper Officers:
- Rectification orders must be passed within the scope of Section 161.
- Reasons for suo moto rectification must be recorded.
- Natural justice principles must be followed for revenue enhancement.
- Instructions to Deputy Commissioners:
- Ensure Proper Officers act cautiously to avoid loss of revenue.
- Review rectification orders for adherence to Section 161.
- File appeals if rectification orders are erroneous.
- Instructions to Joint Commissioners:
- Ensure compliance with rectification instructions.
- Take up revision of rectification orders passed beyond the scope of Section 161.
- Monitoring and Reporting:
- The Additional Commissioner (Systems) is tasked with developing MIS reports to monitor the rectification process.
- All officers are instructed to adhere strictly to the provisions of Section 161 while invoking rectification powers.
The Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/05/TN-_-Circular-No.4-2025.pdf
