𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗪𝗮𝗶𝘃𝗲𝗿 𝗼𝗳 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗼𝗿 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝘂𝗻𝗱𝗲𝗿 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟭𝟮𝟴𝗔 𝗼𝗳 𝗖𝗚𝗦𝗧 𝗔𝗰𝘁 - 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼. 𝟮𝟯𝟴/𝟯𝟮/𝟮𝟬𝟮𝟰-𝗚𝗦𝗧 📢 The Ministry of Finance issued clarifications regarding Section 128A of the CGST Act, 2017, introduced to provide a waiver of interest or penalty or both for demands under Section 73, pertaining to Financial Years 2017-18, 2018-19, and 2019-20.

🔍 𝗞𝗲𝘆 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: 𝟭. 𝗦𝗰𝗼𝗽𝗲 𝗼𝗳 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟭𝟮𝟴𝗔: This section applies to cases where notices or orders were issued under Section 73 for the FYs 2017-18, 2018-19, and 2019-20, covering waivers of interest or penalty if full tax payment is made by 31st March 2025. Includes cases where an initial notice was issued under Section 74 but redetermined under Section 73 as per appellate directions.

𝟮. 𝗙𝗶𝗹𝗶𝗻𝗴 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗪𝗮𝗶𝘃𝗲𝗿: Taxpayers can apply for the waiver using FORM GST SPL-01 or FORM GST SPL-02, depending on the case's status. Applications must be filed within three months from 31st March 2025 for eligible cases or within six months for redetermination cases.

𝟯. 𝗙𝘂𝗹𝗹 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁: Full payment of the tax demanded in the notice or order is mandatory to avail the benefit. Partial payments or selective waiver requests are not permitted.

𝟰. 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴 𝗮𝗻𝗱 𝗜𝘀𝘀𝘂𝗮𝗻𝗰𝗲 𝗼𝗳 𝗢𝗿𝗱𝗲𝗿𝘀: The proper officer will process the application and issue the order in FORM GST SPL-05 (for acceptance) or FORM GST SPL-07 (for rejection). If no decision is made within the specified time, the application is deemed accepted.

𝟱. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗜𝘀𝘀𝘂𝗲𝘀: Waiver applies to tax demands under Section 73, not penalties like late fees or redemption fines. Taxpayers can use ITC to make payments, except for reverse charge or erroneous refunds. Transitional credit cases and IGST/Compensation Cess demands are also covered under Section 128A.

📜 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼.: 238/32/2024-GST 𝗗𝗮𝘁𝗲: 15th October 2024 𝗦𝗼𝘂𝗿𝗰𝗲: Ministry of Finance, Government of India

This circular provides detailed procedural guidelines for availing the waiver of interest or penalty under Section 128A, ensuring compliance and clarity in dealing with past tax periods.