Source: [Notification No. 20/2024 – Central Tax, dated 8th October 2024, issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs (CBIC), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i).]
1. If a person gets a notice or statement under Section 73 and is eligible for waiver of interest or penalty or both, they can apply online in FORM GST SPL-01 through the common portal.
- They must mention details of the notice or statement and also details of tax payment made using FORM GST DRC-03.
2. If a person gets an order under Section 128A(1)(b) or (c) and is eligible for waiver, they can apply online in FORM GST SPL-02 through the common portal.
- They must provide details of the order and the tax payment made.
Provided that the tax must be paid by adjusting it in the electronic liability register against the debit created by the order.
Provided further that, if payment was already made using FORM GST DRC-03, the applicant must file FORM GST DRC-03A (as per Rule 142(2B)) to get that amount credited in the electronic liability register before filing SPL-02.
3. If the tax demand is partly for erroneous refund and partly for other reasons, then the person must first pay the full tax amount before applying under Rule 1 or 2, and the payment must be made before the due date notified under Section 128A
4. If the demand is partly for a period covered under Section 128A(1) and partly for other periods, the person must pay the full tax amount before applying, and before the due date notified.
5. The amount to be paid under Rule 1 or 2 is:
- Total tax in the notice/order minus any amount not payable as per Section 16(5) or 16(6).
6. Applications under Rule 1 or 2 must be made within 3 months from the notified date under Section 128A(1).
Provided that, in cases where SPL-02 is filed (under the first proviso of Section 128A(1)), the time limit is 6 months from the date when the re-determined order is communicated.
7. The application must be supported by documents proving that any appeal or writ has been withdrawn from Appellate Authority, Tribunal, or Court.
Provided that, if the withdrawal order is still pending, the applicant must:
- Upload the withdrawal application when filing SPL-01 or SPL-02, and
- Upload the final withdrawal order within 1 month of its issue by the authority.
8. If the officer thinks that the application is not eligible, they must issue a notice in FORM GST SPL-03 within 3 months from receiving the application, and must give the person a chance to be heard.
9. The applicant can reply to the SPL-03 notice using FORM GST SPL-04, within 1 month of getting the notice.
10. If the officer is satisfied that the person is eligible, they will approve the application and close the case under Section 128A by issuing FORM GST SPL-05 on the portal.
11. If SPL-05 is issued:
(a) In case of SPL-01 (notice/statement cases): No need to issue FORM GST DRC-07 (summary of order).
(b) In case of SPL-02 (order cases): The officer must update the Electronic Liability Register accordingly.
12. If the officer is not satisfied with the reply, they will reject the application by issuing FORM GST SPL-07.
13. (a) If no SPL-03 notice is issued, the officer must issue the order (SPL-05) within 3 months of receiving the application.
(b) If SPL-03 notice is issued:
The officer must issue SPL-05 or SPL-07 within:
- 3 months from receiving the SPL-04 reply, or
- 4 months from the date of SPL-03, if no reply is filed.
Explanation: If appeal/writ withdrawal order is pending, then the time between filing the application and submitting the withdrawal order will not be counted in the officer’s deadline. 14. If the officer does not issue any order within the time mentioned in Rule 13, then the application (SPL-01 or SPL-02) will be automatically approved, and the case will be deemed
closed.
15. (a) If the applicant does not file an appeal against the rejection order (SPL-07) within time under Section 107(1), then any original appeal that was withdrawn earlier to file SPL-02 will be restored.
(b) If the applicant files an appeal against SPL-07:
(i) If the appellate authority says the rejection was wrong, it will pass SPL-06 accepting the application and closing the case.
(ii) If the appellate authority agrees with the rejection, the earlier withdrawn appeal will be restored, provided the applicant files FORM GST SPL-08 (within 3 months from appellate order in FORM GST APL-04), confirming that they have not and will not file any further appeal against the decision.
16. If the applicant is required to pay extra tax (as per the second proviso to Section 128A(1)) but fails to pay within time, any waiver granted under SPL-05 or SPL-06 will become void.
17. If the applicant is required to pay interest or penalty for:
An erroneous refund, or
For a period not covered under Section 128A(1), and fails to pay the amount (as shown in SPL-05 or SPL-06) within 3 months, then the waiver becomes void.
Explanation (Proper Officer):
(a) For SPL-01 (notice/statement cases): The officer under Section 73 will handle the case.
(b) For SPL-02 (order cases): The officer under Section 79 will handle the case.
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