Circular No 248/05/2025

The Government has issued Circular No 248/05/2025 for Various issues related to the availment of benefit of Section 128A of the CGST Act. The circular mainly consist of two questions :

Issue 1: Whether the cases where tax has been paid through return in FORM GSTR-3B instead of through FORM GST DRC-03, prior to the notification of section 128A i.e.1st November 2024, would be eligible for the benefit under section 128A of the CGST Act?

Answer:  Circular clarifies that Yes they are eligible, subject to the condition.  If payment was made before 01-11-2024 and through GSTR-3B and it was intended to pay off the demand raised under section 73 for the eligible period (2017-18 to 2019-20), then it will be treated as a valid payment under section 128A for the purpose of availing waiver of interest or penalty. So payment via GSTR-3B is accepted but only if made before 01-11-2024 and meant for the same demand.

After 01-11-2024, taxpayer must strictly follow Rule 164 which means payment must be made via DRC-03 or through the electronic liability register against the specific demand order or notice. No more GSTR-3B payments will be accepted for this purpose after 01-11-2024. Additionally, evenif tax paid through GSTR-3B before any demand notice or order issued and that payment related to 2017-18 to 2019-20, will still eligible under section 128A provided the proper officer verifies that the payment was genuinely towards the demand.

Summary:

Issue 2: Whether (i) the entire amount of tax demanded is required to be discharged and (ii) the appeal is required to be withdrawn for the entire period, where notices/statements/orders issued to taxpayers, pertains to period covered partially under Section 128A and partially by those outside it.

Answer:

(i) No -Full Tax demand is not required. As per amended Rule 164(4), the Taxpayer needs to pay only tax for the period covered under section 128A. To apply for waiver using Form SPL-01 and SPL-02.

(ii) No- Full Appeal Withdrawal is not required. As per the proviso to Rule 164(7), the taxpayer does not need to withdraw the entire appeal. Instead, the taxpayer should intimate the appellate authority or Tribunal that his intent to avail benefit of section 128A and that he does not intend to pursue the appeal for the period covered under the said section i.e FY 2017-18 to 2019-20.

The appellate Authority /Tribunal will :

• Take note of this intimation and
• Proceed to hear and pass order only for the remaining period/

Hence, there is no need to withdraw the entire appeal; just an intimation is enough for the eligible portion.

Clarification issued vide point 6 of the Table at para 4 of circular No. 238/32/2024-GST dated 15th October  2024 is accordingly withdrawn.

Download – Circular No 248/05/2025