In a significant update to the Goods and Services Tax (GST) framework, the Central Board of Indirect Taxes and Customs (CBIC) has notified the Central Goods and Services Tax (Second Amendment) Rules, 2025 through Notification No. 11/2025 - Central Tax, dated March 27, 2025. These amendments primarily impact Rule 164, refining the provisions related to tax demands, refunds, and appeal withdrawals under the CGST Act, 2017.
Key Amendments Introduced
Clarification on Refund Eligibility
- A new Explanation has been inserted in Rule 164(4) to specify that no refund will be granted for tax, interest, or penalty already paid for any period before the commencement of the Second Amendment Rules, 2025, in cases where a demand includes both the specified and non-specified periods under Section 128A(1) of the CGST Act.
Flexibility in Appeal Withdrawal for Mixed Periods
- A new proviso has been added to Rule 164(7), allowing taxpayers facing tax demands covering both pre-defined periods (July 1, 2017 – March 31, 2020) and other periods to opt for partial appeal withdrawal rather than a complete withdrawal.
- Clarification: If a taxpayer chooses not to pursue the appeal for the specified period, the appellate authority will only assess the demand for the remaining period, ensuring a fair decision on the disputed tax amount.
Official copy of the notification is as follows
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NOTIFICATION
No. 11/2025–Central Tax
New Delhi, the 27th March, 2025.
G.S.R... (E).–In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:
1. (1) These rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017,–(a) in rule 164, –
(i) in sub-rule (4), after the words "after payment of the full amount of tax", the words
"related to period mentioned in the said sub-section and" shall be inserted.
(ii) after sub-rule (4), the following Explanation shall be inserted, namely: -
"Explanation, - No refund shall be available for any tax, interest, and penalty, which has already been discharged for the entire period, prior to the commencement of the Central Goods and Services Tax (Second Amendment) Rules, 2025, in cases where a notice or statement or order mentioned in sub-section (1) of section 128A, includes a demand of tax, partially for the period mentioned in the said sub-section and partially for a period other than
mentioned in the said sub-section.".
(b) in rule 164, in sub-rule 7, after the first proviso, the following proviso shall be inserted, namely: -
"Provided further that where the notice or statement or order mentioned in sub-section(1) of section 128A of the Act includes demand of tax, partially for the period mentioned in the said subsection and partially for the period other than that mentioned in the said sub-section, the applicant instead of withdrawing the appeal, shall intimate the appellate authority or Appellate Tribunal that he does not wish to pursue the appeal for the period mentioned in the said sub-section and the relevant authority shall, after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as he thinks just and proper.
Explanation,– For the removal of doubt, it is clarified that the appeal application shall be deemed to have been withdrawn to the extent of the said intimation for the period from the 1st July, 2017 to the 31st March, 2020 or part thereof, for the purpose of sub-clause (3) of section 128A."
[No. CBIC-20016/12/2025-GST]
(Raushan Kumar)
Under Secretary to the Government of India.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, subsection(i), vide number G.S.R. 610(E), dated, the 19th June 2017 and was last amended, vide number G.S.R. 72(E), dated the 23rd January, 2025.
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