Clarification of Various Doubts Related to Section 128A of CGST Act, 2017

Notification No.: 238/32/2024-GST

Notification Date: 15th October 2024

Relevant Act / Rule: Goods and Service Tax Act, 2017

Relevant Section:

  • Section 128A
  • Section 16
  • Section 73
  • Section 107
  • Section 108
  • Section 113

Relevant Rule:

  • Rule 164
  • Rule 142(2B)

The CBIC issued clarifications on the waiver of interest or penalties under Section 128A of the CGST Act, introduced by Finance Act (No. 2), 2024.

 

The waiver applies to tax demands for FYs 2017-18, 2018-19, and 2019-20 if the full tax is paid by 31.03.2025 or within six months of re-determination. Applications must be filed within 3 months using FORM GST SPL-01 or SPL-02. Appeals or writs must be withdrawn.

 

The waiver is only granted if the full tax is paid, and it also applies to IGST and compensation cess demands. However, penalties like late fees, fines, and IGST under the Customs Act are excluded. Taxpayers may use ITC for payment except in certain cases.

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