Application for Waiver of Interest and Penalty (FORM GST SPL-02)

Edition: September 2025
Disclaimer: This manual is for compliance facilitation. It does not substitute statutory provisions, notifications, or circulars. Taxpayers must verify with the CGST/SGST Acts, Rules, and GSTN updates.

✍️ Preface

Taxpayers who have received demand orders under Sections 73 or 74 of CGST Act may be eligible to apply for waiver of interest and penalty under Section 128A, subject to certain conditions. The waiver is filed in Form GST SPL-02. This report explains the law basis, process of filing, FAQs, and a compliance checklist.

⚖️ 1. Law Basis

• Section 128A, CGST Act, 2017 – Waiver of interest and penalty subject to conditions.

• Section 73 & 74, CGST Act, 2017 – Determination of tax not paid, short paid, or wrongly refunded.

• Rule 159 & 160, CGST Rules, 2017 – Recovery provisions and rectification.

🛠️ 2. Step-by-Step Process – Filing SPL-02

1. Login at www.gst.gov.in → Dashboard > Services > User Services > My Applications.

2. Select Application Type = Waiver Scheme under Section 128A → Click NEW APPLICATION.

3. Select Form SPL-02 → Click CREATE APPLICATION.

4. Answer mandatory eligibility questions (e.g., appeal withdrawal, order type under Sec. 73/74, erroneous refund).

   • Appeal must be withdrawn to avail waiver.

   • Application must be filed within 3 months from notified date.

5. Enter Order ID → Details (date, section, amount) auto-populated.

6. Fill tables:

   • Amount Demanded in Order (auto-filled).

   • Ineligible ITC denied/re-eligible (entered manually).

   • Amount already paid via DRC-03/DRC-03A.

7. Upload supporting documents:

   • Self-certified copy of order.

   • Proof of withdrawal of appeal/writ.

   • Proof of tax paid.

8. Select declarations → Authorized Signatory → Place.

9. Save draft → Preview → File with DSC/EVC.

10. ARN generated → Case visible under My Applications.

📌 3. Key Conditions

• Full tax amount must be paid by notified date.

• Appeals, if filed, must be withdrawn.

• Already paid interest/penalty cannot be refunded.

• If partial payment made, waiver can be sought for balance.

• Ineligible cases: Refund-due cases, fully recovered demands, pending appeal-effect cases.

• Only one SPL-02 can be filed per order.

❓ 4. FAQs (with Basis)

Q1. Which orders are eligible for SPL-02?
Orders under Sec. 73/74 for FY 2017–2020, including DRC-07, rectification, revision, or appeal effect orders (not under refund/settled demands).

Q2. Can I file SPL-02 if I have applied for withdrawal but order not yet issued?
Yes, upload withdrawal application initially; later upload withdrawal order.

Q3. What happens after filing SPL-02?

• If approved/auto-approved, SPL-05 order issued waiving interest/penalty (fully/partially).

• Entry created in liability ledger accordingly.

• Recovery officer stopped from further action unless void order issued.

Q4. Is payment of tax compulsory before waiver?
Yes, full tax demanded must be paid; otherwise, application invalid.

Q5. Can I claim refund of interest/penalty already paid?
No, refund is not admissible.

✅ 5. Compliance Checklist