This circular provides clarifications on issues faced in availing the benefits under Section 128A of the CGST Act, 2017, introduced based on the GST Council’s 53rd and 54th meetings. Section 128A allows for the waiver of interest or penalty for demands raised under Section 73 for the period from 1st July 2017 to 31st March 2020.
Key Clarifications:
Eligibility of Payments Made Through GSTR-3B Instead of DRC-03:
Taxpayers who made payments via FORM GSTR-3B before 1st November 2024 are eligible for benefits under Section 128A.
However, payments made on or after 1st November 2024 must be made using FORM GST DRC-03 as per Rule 164.
Appeal Withdrawal for Partial Tax Demands (Inside & Outside Section 128A’s Scope):
If a demand notice or order includes periods both covered and not covered under Section 128A, taxpayers can withdraw only the appeal for the covered period (FY 2017-18 to FY 2019-20).
Taxpayers must file FORM SPL-01 or FORM SPL-02 and inform the appellate authority or tribunal about their intent to avail Section 128A benefits while continuing the appeal for other periods.
The Appellate Authority or Tribunal will pass an appropriate order for the period outside Section 128A’s scope.
Additionally, Point 6 of Table at Para 4 of Circular No. 238/32/2024-GST dated 15th October 2024 is withdrawn in light of these clarifications.
Action Points:
Field formations must ensure uniform implementation of these provisions.
Trade notices should be issued to inform taxpayers.
Any implementation challenges should be reported to the Board.
Notification Reference: GST
Circular No. 248/05/2025-GST
27/03/2025