CBIC Clarifies Issues In Trade & Industry Regarding Eligibility Of Cases For Benefit U/S 128A Of CGST Act
The Central Board of Indirect Taxes and Customs (CBIC) on 27th March 2025 vide Circular No. 248/05/2025-GST has given clarification on various issues related to availment of benefit of Section 128A of the CGST Act, 2017. Based on the recommendations of the GST Council made in its 53rd and 54th meetings, a new section 128A was inserted in the CGST Act, 2017 and Rule 164 has...
The Central Board of Indirect Taxes and Customs (CBIC) on 27th March 2025 vide Circular No. 248/05/2025-GST has given clarification on various issues related to availment of benefit of Section 128A of the CGST Act, 2017.
Based on the recommendations of the GST Council made in its 53rd and 54th meetings, a new section 128A was inserted in the CGST Act, 2017 and Rule 164 has been inserted in the CGST Rules, 2017 w.e.f. 1st November 2024 to provide for waiver of interest or penalty or both relating to demands raised under Section 73 for the period from 1st July 2017 to 31st March 2020.
In this regard, circular No. 238/32/2024-GST dated 15th October 2024 has also been issued clarifying various issues related to implementation of the said provisions.
The CBIC vide Circular No. 248/05/2025-GST has clarified various issues related to availment of benefit of Section 128A of the CGST Act, 2017.
In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, clarified on below issues:
- Whether the cases where tax has been paid through return in FORM GSTR-3B instead of through FORM GST DRC-03, prior to the notification of section 128A i.e.1st November 2024, would be eligible for the benefit under section 128A of the CGST Act?
CBIC stated that a taxpayer who has made the payment through FORM GSTR-3B before the date of coming into force of section 128A i.e. 01st November 2024, shall also be eligible to avail the benefit under the said section. However, any taxpayer who intends to avail the benefit of the said provision on or after the said section comes into force, i.e.1st November 2024 shall be required to make payments necessarily through the modes as prescribed under rule 164 of the CGST Rules.
The Board clarified that the cases where the payment of tax has been made through FORM GSTR 3B prior to the issuance of demand notice and/or adjudication order before the date 1st November 2024, shall also be eligible for benefit under section 128A of the CGST Act, subject to verification by the proper officer.
- Whether (i) the entire amount of tax demanded is required to be discharged and (ii) the appeal is required to be withdrawn for the entire period, where notices/statements/orders issued to taxpayers, pertains to period covered partially under Section 128A and partially by those outside it?
CBIC stated that in cases where the notice/statement or order etc. pertains to the period partially covered under Section 128A and partially beyond the said period, Rule 164 (4) and proviso to Rule 164(7) have been amended to allow the taxpayer to file an application under FORM SPL-01 or FORM SPL-02 as the case may be after making payment of his tax liability for the periods covered under section 128A.
The taxpayer after filing FORM SPL-01 or FORM SPL-02 as the case may, shall intimate the appellate authority or Tribunal his intent to avail the benefit of Section 128A and that he does not intend to pursue the appeal for the period covered under the said Section i.e. FY 2017-18 to 2019-20. The Appellate Authority or Appellate Tribunal as the case may, shall after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as it thinks just and proper, clarified the Board.
