GST Council unlocks ROM Provisions? A forward way for Correcting Tax Mistakes?

The GST Council’s recommendations may lead to an influx of applications for rectification of mistakes (ROM) and refund requests. The reason behind this surge is the clarifications proposed by the GST Council, which aim to address issues in favour of taxpayers. These clarifications contrast with the basis adopted by the Assessing Officer while issuing show cause notices or passing orders. Many of these cases could be pending before appellate forums, including the writ courts.

Once the underlying disputed issue is clarified or rectified through retrospective amendments, the next step may involve filing an ROM (if the time limit permits) or seeking adjudication from the AO or the appellate authority. It’s crucial to analyze the correct and legal approach for revising any existing show cause notice, order or appeal and asserting consequential claims.

According to legal principles, subsequent amendments or clarifications serve as valid grounds for rectification of mistakes if they are clarificatory.

In my personal understanding, most of the changes recommended by the GST Council pertain to ongoing disputes. The clear objective appears to be alleviating taxpayers’ burden from unnecessary litigation.

Let’s wait for the actual notes!