The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications regarding the implementation of Section 128A of the CGST Act, 2017, which provides for the waiver of interest and penalties on tax demands for the period from July 1, 2017, to March 31, 2020. The circular addresses concerns raised by businesses regarding eligibility and procedural aspects of availing benefits under the scheme.

Key Clarifications:

1. Eligibility of Tax Paid Through GSTR-3B Instead of DRC-03:
   • Taxpayers who paid tax via GSTR-3B before November 1, 2024 (the effective date of Section 128A) are eligible for amnesty benefits.
   • Any payment made on or after November 1, 2024, must be done via FORM GST DRC-03 as per Rule 164.
   • Tax payments through GSTR-3B before demand notices or adjudication orders will be considered, subject to verification by the proper officer.
2. Partial Appeals for Mixed-Period Tax Demands:
   • If a tax demand covers both amnesty-eligible (2017-2020) and non-eligible periods, taxpayers can withdraw appeals only for the eligible period while continuing disputes for other periods.
   • To avail this, taxpayers must file FORM SPL-01 or SPL-02, pay the tax for the eligible period, and inform the appellate authority or tribunal.
   • Rule 164(4) and 164(7) have been amended to allow this process.
3. Withdrawal of Previous Clarification: A previous clarification under Circular No. 238/32/2024-GST (Point 6 of Table at Para 4) has been withdrawn to align with these new amendments.