Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods [ Section 128A ] - GST Ready Reckoner - GST

Waiver of interest or penalty or both relating to demands raised u/s 73, for certain tax periods [ Section 128A w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024 ] [ Inserted Vide Finance (No. 2) Act, 20224 ] Tax Payment Relief for Notices and Orders Issued from July 1, 2017, to March 31, 2020 [ Section 128A(1) ] (1) Notwithstanding anything to the contrary contained in this Act, where any amount of tax is payable by a person chargeable with tax in accordance with, (a) a notice issued u/s 73(1) or a statement issued u/s 73(3), and where no order u/s 73(9) has been issued; or (b) an order passed u/s 73(9), and where no order u/s 107(11) or u/s 108(1) has been passed; or (c) an order passed u/s 107(11) or u/s 108(1), and where no order u/s 113(1) has been passed, pertaining to the period from 1st July, 2017 to 31st March, 2020, or a part thereof, and the said person pays the full amount of tax payable as per the notice or statement or the order referred to in clause (a), clause (b) or clause (c), as the case may be, on or before the date, as may be notified by the Government on the recommendations of the Council, no interest under section 50 and penalty under this Act, shall be payable and all the proceedings in respect of the said notice or order or statement, as the case may be, shall be deemed to be concluded, subject to such conditions as may be prescribed: Where a notice has been issued u/s 74(1) , and an order is passed or required to be passed by the proper officer in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court in accordance with the provisions of section 75(2) , the said notice or order shall be considered to be a notice or order, as the case may be, referred to in clause (a) or clause (b) of Section 128A(1). [ First Proviso of Section 128A(1) ] The conclusion of the proceedings under this sub-section, in cases where an application is filed u/s 107(3) or u/s 112(3) or an appeal is filed by an officer of central tax u/s 117(1) or u/s 118(1) or where any proceedings are initiated u/s 108(1) , against an order referred to in clause (b) or clause (c) or against the directions of the Appellate Authority or the Appellate Tribunal or the court referred to in the first proviso, shall be subject to the condition that the said person pays the additional amount of tax payable, if any, in accordance with the order of the Appellate Authority or the Appellate Tribunal or the court or the Revisional Authority, as the case may be, within three months from the date of the said order. [ Second Proviso of Section 128A(1) ] Where such interest and penalty has already been paid, no refund of the same shall be available. [ Third Proviso of Section 128A(1) ] The provision of section 128A(1) shall not apply in the following cases In respect of any amount payable by the person on account of erroneous refund. [ Section 128A(2) ] In respect of cases where an appeal or writ petition filed by the said person is pending before Appellate Authority or Appellate Tribunal or a court, as the case may be, and has not been withdrawn by the said person on or before the date notified Section 128A(1). [ Section 128A(3) ] Notwithstanding anything contained in this Act, where any amount specified Section 128A(1) has been paid and the proceedings are deemed to be concluded under the Section 128A(4), no appeal u/s 107(1) or u/s 112(1) shall lie against an order referred to in clause (b) or clause (c) of Section 128A(1), as the case may be. [ Section 128A(4) ] Important Notification Circular The Central Government notifies the respective date by which payment for the tax, as per the notice, statement, or order, must be made to qualify for a waiver of interest and penalties under Section 128A of the CGST Act. [ Notification No. 21/2024 Central Tax dated 08.10.2024 ] Clarification of various doubts related to Section 128A of the CGST Act, 2017. [ Circular No. 238/32/2024-GST dated 15.10.2024 ]