POWERS TO WAIVE PENALTY - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

9. POWERS TO WAIVE PENALTY 9.1 Section 128 of the CGST Act, 2017 provides the power to the Government, to waive the penalty imposable under Section 122 or 123 or 125 of the CGST Act, 2017 or the late fees to be paid for delay in filing returns, on such class of taxpayers under justifying circumstances 9.2.1 (Inserted by Section 146 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024 and Notification No. 17/2024-CT dated 27th September, 2024.) [As per Section 128(A) of the CGST Act, 2017, if any amount of tax is payable by a person pertaining to the period from 1st July, 2017 to 31st March, 2020, or a part thereof, in accordance with a notice issued under Section 73(1) or a statement issued under Section 73(3), and if no Order-In-Original under Section 73(9) is passed or if order is passed and no Order-In-Appeal under Section 107(11) or Section 108(1) has been passed or if an Order-In-Appel is passed but no order has been passed by the Tribunal, and the said person pays the full amount of tax payable as per the notice or statement or the order on or before the specified date, no interest under Section 50 and penalty under the CGST Act, shall be payable and all the proceedings in respect of the said notice or order or statement shall be deemed to be concluded. 9.2.2 However, if a notice has been issued under Section 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 sub-section (2) of section 75, the said notice or order shall be considered to be a notice in respect of which no Order-In-Original has been passed or order in respect of which no Order-In-Appeal has been passed. 9.2.3 The conclusion of the proceedings in cases where an appeal is filed before the Appellate Authority or an appeal is filed by the Central tax Officer before the High Court or Supreme Court or where any proceedings are initiated by the Revisional Authority, 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, within three months from the date of the said order. The interest and penalty should have been already paid and no refund of the same shall be available. 9.2.4 The waiver of interest and penalty shall not be applicable in respect of any amount payable by the person on account of erroneous refund and 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, and has not been withdrawn on or before the notified date. 9.2.5 If any amount has been paid and the proceedings are deemed to be concluded under Section 128A(1), no appeal with Appellate Authority or Tribunal shall lie against the notice or Order-In-Original.]