The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 20/2024 – Central Tax on October 8, 2024, which brings new changes under Rule 164 of the GST rules, effective from November 1, 2024. This new rule outlines the procedure and conditions for closure of proceedings under Section 128A related to demands raised under Section 73, allowing taxpayers to apply for waiver of interest or penalty.
Key Highlights
- Electronic Applications: Taxpayers can file applications for interest or penalty waiver electronically using FORM GST SPL-01 or FORM GST SPL-02 based on their case.
- Waiver Eligibility: The waiver applies to taxpayers with notices, statements, or orders issued under Section 128A, and covers both erroneous refunds and other tax demands.
- Time Limits: Applications must be filed within three to six months from the date notified under Section 128A, depending on the case.
- Appeal Withdrawal: Applicants must submit proof of withdrawal of any appeals or writ petitions to qualify for the waiver.
- Officer Review: Proper officers will assess the applications and issue notices if the waiver claim is ineligible, providing taxpayers an opportunity to respond.
- Automated Closure: If no order is issued by the proper officer within the stipulated timeframe, the application will be deemed approved, and the proceedings closed.
Implications for Taxpayers
This new rule simplifies the process for resolving GST disputes, offering a streamlined approach to waiving interest and penalties. Businesses facing tax demands, especially for erroneous refunds, should closely follow this update to benefit from the waiver provisions. It also underscores the importance of timely applications and proper documentation.
Official copy of the notification has been attached
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