Clarifications on Availing Benefit Under Section 128A of CGST Act

Last updated: 21 April 2025

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This notification provides clarifications regarding the benefits available under Section 128A of the CGST Act, 2017. This section, along with Rule 164 of the CGST Rules, 2017, was introduced effective 1st November 2024. It allows for the waiver of interest or penalty, or both, for demands raised under Section 73 covering the period from 1st July 2017 to 31st March 2020. Further details were previously outlined in Circular No. 238/32/2024-GST dated 15th October 2024.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

North Block, New Delhi,
Dated: 27th March 2025

To,
All the Principal Chief Commissioners/ Chief Commissioners
All the Principal Directors General/ Directors General

Madam/Sir,

Subject: Various issues related to availment of benefit of Section 128A of the CGST Act, 2017-reg.

Based on the recommendations of the GST Council made in its 53rd and 54th meetings,a new section 128A was inserted in the Central Goods and ServicesTaxAct,2017 (hereinafter referred to as CGST Act, 2017) andRule 164 has been inserted in the Central Goods and Services TaxRules,2017 (hereinafter referred to as CGST Rules, 2017) w.e.f. 1stNovember 2024 to provide for waiver of interest or penalty or both relating to demands raised under Section 73 for the period from 1stJuly 2017 to 31stMarch 2020.Inthis regard, circular No. 238/32/2024-GST dated 15thOctober 2024 has also been issued clarifying various issues related to implementation of the said provisions.

Official copy of the circular has been attached

FAQ :

Section 128A of the CGST Act, 2017, along with Rule 164 of the CGST Rules, 2017, was introduced to provide for the waiver of interest or penalty, or both, relating to demands raised under Section 73 for specific periods.

Section 128A of the CGST Act, 2017, and Rule 164 of the CGST Rules, 2017, were inserted and became effective from 1st November 2024.

The waiver of interest or penalty under Section 128A applies to demands raised under Section 73 for the period from 1st July 2017 to 31st March 2020.

Section 128A covers demands raised under Section 73 of the CGST Act, 2017.

Yes, Circular No. 238/32/2024-GST dated 15th October 2024 was issued to clarify various issues related to the implementation of Section 128A.

Notification No : Circular No. 248/05/2025-GST
Source : https://taxinformation.cbic.gov.in/view-pdf/1003271/ENG/Circulars

Attached File : 322600_11451_circular_no_248_05_2025.pdf

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