Circular No.: 248/05/2025-GST
Date of Circular: 27th March 2025
Relevant Sections and Rules:
- CGST Act, 2017: Section 128A – Waiver of interest or penalty
- CGST Rules, 2017: Rule 164 – Procedural provisions for Section 128A
- Section 168(1): Power to issue instructions
- Related Circular: 238/32/2024-GST dated 15.10.2024
Clarifications on Operationalization of Waiver under Section 128A
- Eligibility of Tax Paid via GSTR-3B (Prior to 01.11.2024):
➤ Taxpayers who paid tax against demand under Section 73 for FY 2017–18 to FY 2019–20 using FORM GSTR-3B before 01.11.2024 (date of notification of Section 128A) are also eligible for the benefit of waiver under Section 128A.
➤ It is clarified that:
- Such payment will be treated as valid for Section 128A if it was made with intent to discharge the demand.
- Post 01.11.2024, however, payments must follow Rule 164 procedure – i.e., through FORM DRC-03 or ELR depending on the case type.
- Partial Period Cases – Mixed Period Notices or Orders:
Where the SCN or adjudication order spans both:
- Period covered under Section 128A (i.e., FY 2017–18 to 2019–20), and
- Period outside Section 128A scope,
➤ The taxpayer can avail waiver for the covered period without needing to withdraw the entire appeal.
✅ Procedure:
- File FORM SPL-01 or SPL-02 for the relevant portion.
- Inform appellate authority or Tribunal about the intent to not pursue appeal for the eligible period.
- The authority shall pass order for the non-covered period as it deems fit.
🚫 Earlier clarification (Para 4, Point 6 of Circular 238/32/2024-GST) requiring full appeal withdrawal is withdrawn.
This circular offers relief and operational clarity for taxpayers opting for waiver of interest/penalty under Section 128A, especially:
- Those who paid through GSTR-3B earlier, and
- Those dealing with composite period demands.
Source: Circular No.: 248/05/2025-GST
