GST Update: Applicability of Section 128A
We would like to bring to your attention the recent update issued by the Central Board of Indirect Taxes and Customs (CBIC) through Instruction No. 02/2025-GST, dated 7th February 2025, regarding the procedure for departmental appeals related to interest and/or penalty under Section 128A of the CGST Act, 2017.
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The benefit of Section 128A is available for Financial Years 2017-18, 2018-19, and 2019-20.
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Taxpayers who have fully paid the tax amount under Section 73 but have disputes only related to interest and/or penalty may avail this benefit.
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If the department has filed or is in the process of filing an appeal solely due to miscalculations of interest or discrepancies in penalty imposition, taxpayers should not be denied relief under Section 128A.
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Proper officers are advised to withdraw such appeals if they pertain solely to interest or penalty, provided the taxpayer meets the conditions prescribed under Section 128A and Rule 164 of the CGST Rules
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This update aims to reduce litigation, simplify compliance, and minimize financial and administrative burdens for eligible taxpayers.
We recommend reviewing any ongoing disputes related to interest and penalty for the specified financial years to assess eligibility under Section 128A. Our team is available to assist you with the necessary procedures and clarifications.
For any feedback or queries, feel free to reach out to us at info@akmglobal.in.