Waiver Scheme – Payment Timeline under Section 128A, CGST Act

Notification No.: 21/2024 – Central Tax
Date of Notification: 8th October 2024

Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 128A(1) – Power of Government to notify waiver of interest/penalty upon payment of tax within a specified time
  • Section 73 & 74 – Determination of tax not paid/short paid (non-fraud & fraud cases)
  • Section 75(2) – Redetermination of tax after appellate authority/tribunal/court directions

Summary of Notification:

1. This notification, issued under Section 128A(1) of the CGST Act, 2017, specifies timelines for waiver of interest and penalty for certain registered persons, subject to payment of outstanding tax dues.
2. The timelines are as follows:
   • Sl. No. 1 – General Cases:
     • For registered persons issued notices/statements/orders under clauses (a), (b), or (c) of Section 128A, payment of tax dues can be made up to 31st March 2025 to avail waiver of interest and penalty.
   • Sl. No. 2 – Cases Converted from Section 74 to Section 73:
     • For taxpayers initially issued notices under Section 74(1) (fraud cases), but later redetermined under Section 73 pursuant to appellate/tribunal/court directions (under Section 75(2)), payment must be made within six months from the date of such redetermination order by the proper officer.
3. The notification provides a one-time relief mechanism for taxpayers to settle tax dues with waiver of interest and penalties under Section 128A.
4. It comes into effect from 1st November 2024.

Source: Notification No.: 21/2024 – Central Tax