Notification No.: 11/2025 – Central Tax
Date of Notification: 27th March 2025
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 128A – Waiver of interest and penalty in certain cases
- Section 164 – Power of Government to make rules
- CGST Rules, 2017 (Amended):
- Rule 164(4) – Waiver of interest/penalty – clarification regarding period of demand
- Rule 164(7) – Withdrawal of appeals in cases covered under Section 128A
Summary of Notification:
- Amendment in Rule 164(4):
- It has been clarified that waiver of interest/penalty under Section 128A will apply only for the period specified in that section.
- An Explanation has been inserted stating that no refund shall be available if tax, interest, or penalty has already been paid for the entire period prior to the commencement of these rules, even if the demand included both eligible and ineligible periods.
- Amendment in Rule 164(7):
- A new proviso allows taxpayers, in cases where the notice/order includes demand for both the eligible period (1st July 2017 – 31st March 2020) and non-eligible periods, to continue the appeal only for the non-eligible period.
- Instead of withdrawing the entire appeal, taxpayers may intimate the Appellate Authority/Tribunal that they do not wish to pursue the appeal for the eligible period under Section 128A.
- Such intimation will be deemed as withdrawal of appeal for the eligible period (1st July 2017 – 31st March 2020) for the purposes of Section 128A.
- These amendments ensure clarity in implementation of GST amnesty scheme under Section 128A, especially in mixed-period demand cases, balancing relief with administrative certainty.
