Various issues related to availment of benefit of Section 128A of the CGST Act, 2017

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

1. 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.

2. 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🚫 Earlier clarification (Para 4, Point 6 of Circular 238/32/2024-GST) requiring full appeal withdrawal is withdrawn.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