Why This Notification Matters

Delhi’s GST Notification 22/2024, issued on 1st December 2025, opens a rare and time-bound opportunity for businesses and professionals who lost input tax credit (ITC) due to the infamous section 16(4) deadline. If your ITC was denied only because of a timing issue, but is now eligible under the new subsections 16(5) or 16(6), you can apply for rectification—even if the order is old. This is a compliance game-changer for CFOs, accountants, and business owners in Delhi, offering a second chance to reclaim blocked credits and clean up past GST disputes. For expert assistance in the region, consulting a Delhi chartered accountant is highly recommended.

What Changed, Who Benefits, and How This Window Works

Earlier, if you missed the strict time limit under section 16(4) to claim ITC, your credit was lost—even if you met all other conditions. Now, with the introduction of subsections 16(5) and 16(6), some of these previously denied credits have become eligible. Notification 22/2024 creates a 6-month window for Delhi-registered taxpayers to apply for rectification of past orders (under sections 73, 74, 107, or 108) where ITC was denied solely due to 16(4), provided no appeal is pending or filed. The application must be made online, with details in Annexure A, and the original authority must decide within 3 months.

The Backstory: ITC Denial under Section 16(4) and the New Hope

Section 16(4) of the Delhi GST Act set a hard deadline for availing ITC—typically the due date of the September return following the end of the financial year, or the date of annual return, whichever is earlier. Many taxpayers lost ITC simply because of delayed documentation or inadvertent errors, even when the underlying transaction was genuine. Appeals and revisions offered little relief, as the law was clear and strict.

Recent amendments introduced subsections 16(5) and 16(6), which relax the eligibility for certain cases—such as delayed invoices due to supplier errors or other specified circumstances. This shift prompted the need for a special rectification process, as many old orders had already confirmed ITC denial under the old regime. For related legal nuances, see the Allahabad HC: ITC Can’t Be Denied for Supplier’s Later Cancellation; Section 74 Set Aside blog post.

Who Can Apply? Eligibility Checklist in Plain English

Before you rush to file, check these four conditions. You are eligible only if all are true:

1. ITC was denied solely due to section 16(4)—not for any other reason (like ineligible goods/services, fake invoices, or mismatched returns).
2. The same ITC is now eligible under section 16(5) and/or 16(6)—meaning the law has changed in your favour for this specific credit.
3. The order against you was passed under section 73, 74, 107, or 108—these cover demand and recovery, as well as appeals and revisions.
4. No appeal has been filed or is pending for that order—if you have already appealed, you cannot use this rectification route.