Comprehensive Guide to Section 128A of the CGST Act

Posted by admin
On 02/14/2025
0 Comments

Goods And Services Tax India, Gst With Indian Rupee Symbol, Abs

Section 128A of the Central Goods and Services Tax (CGST) Act, 2017, was introduced to provide relief to taxpayers by allowing the waiver of interest or penalty related to demands under Section 73 of the CGST Act. This section is effective from November 1, 2024, and applies to the financial years 2017-18, 2018-19, and 2019-20.

Key Provisions of Section 128A

1. Waiver of Interest or Penalty :

- Section 128A allows for the waiver of interest or penalty, or both, related to demands raised under Section 73 of the CGST Act.
- The waiver is subject to certain conditions and is aimed at providing relief to taxpayers for the specified financial years.

2. Insertion of Rule 164 :

- To operationalize Section 128A, Rule 164 has been added to the CGST Rules, 2017.
- This rule outlines the procedure and conditions for closing proceedings under Section 128A.

3. Eligibility Criteria :

- The waiver applies to cases where:
  - A notice has been issued under Section 73(1) or a statement under Section 73(3), but no order has been issued under Section 73(9).
  - An order has been issued under Section 73(9), but no order has been passed by the Appellate Authority (Section 107(11)) or Revisional Authority (Section 108(1)).
  - The proper officer has been directed under Section 75(2) to re-determine the tax under Section 73(1).

4. Conditions for Waiver :

- Taxpayers must make full payment of the demanded tax by March 31, 2025, to avail the benefit of a waiver on interest or penalties.
- For cases involving redetermined tax under Section 73 of the CGST Act, payment must be made within six months from the date of the order issued by the proper officer.

Procedure for Availing Waiver

The table below outlines various scenarios, the required forms, and deadlines for application and payment:

Scenario	Form to be Filled	Deadline for Application	Deadline for Payment
Notice issued under Section 73(1) or statement under Section 73(3), but no order under Section 73(9) has been issued.	GST SPL-01	Within 3 months from March 31, 2025	Within 6 months from the date of the order
Order issued under Section 73(9), but no order by Appellate or Revisional Authority under Section 107(11) or Section 108(1).	GST SPL-02	Within 3 months from March 31, 2025	Within 6 months from the date of the order
Order issued by Appellate or Revisional Authority under Section 107(11) or Section 108(1), but no order under Section 113(1) by Appellate Tribunal.	GST SPL-02	Within 3 months from March 31, 2025	Within 6 months from the date of the order
Notice initially issued under Section 74, but order passed or required to be passed under Section 73 as per directions of Appellate Authority, Appellate Tribunal, or Court under Section 75(2).	GST SPL-02	Within 6 months from the date of the order	Within 6 months from the date of the order

Overview of SPL Forms

SPL Form	Purpose & Details
SPL-01	To request a waiver when notices/statements are issued under Section 73, but no final order has been passed. Full tax payment must be made via GST DRC-03 before filing. Must be filed within 3 months from March 31, 2025.
SPL-02	For waiver requests when demand orders under Section 73 have been issued, but no revision orders under Sections 107(1) or 108(1) have been passed. Payment must be made via the electronic liability register. Must be filed within 3 months from March 31, 2025, or within 6 months in case of redetermination.
SPL-03	Issued by the officer to notify the taxpayer that the waiver application (SPL-01 or SPL-02) is liable to be rejected. The officer must issue SPL-03 within 3 months of receiving the waiver application.
SPL-04	Filed by the taxpayer to respond to SPL-03 and address issues raised. The taxpayer must address all rejection points raised in SPL-03. Must be filed within 1 month of receiving SPL-03.
SPL-05	Issued by the officer to approve the waiver application (SPL-01 or SPL-02). Must be issued within 3 months if SPL-03 is not issued, or within 3 to 4 months after receiving SPL-04. If no order is passed within the prescribed time, the application is deemed approved (Rule 164).
SPL-06	Issued by the appellate authority to approve the waiver after an appeal against SPL-07 rejection. The appellate authority must issue SPL-06 if the waiver application is found valid after review of SPL-07.
SPL-07	Issued by the officer to reject the waiver application. The taxpayer can appeal against SPL-07 if they believe the rejection is wrongful. Appeal must be filed within the time limit under Section 107.

Conclusion

The GST framework under Section 128A of the CGST Act, 2017, offers a structured approach for waiving interest or penalties. With the introduction of Rule 164 and well-defined guidelines, the section aims to streamline the resolution of pending cases and provide significant relief to taxpayers. The clearly outlined application procedures and conditions ensure a transparent and consistent process for all stakeholders.