The Kerala Tax Department has released GST Circular No. 12/2025, which amends Circular No. 5/2023 to streamline the waiver of interest or penalty under Section 73 for the fiscal years 2017-18, 2018-19, and 2019-20.
This change, based on the advice of the 53rd GST Council, defines which officer is responsible for processing waiver petitions based on the type of notification or order.
Furthermore, Section 79 tasks are now delegated to Deputy/Assistant State Tax Officers in Taxpayer Services Verticals to facilitate efficient processing. This circular is effective March 15, 2025.
Using the powers granted by Clause (91) of Section 2, read with Sub-section (1) of Section 5, and subject to Sub-section (2) of Section 5 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) (referred to as “the Act”), the Commissioner of State Tax assigned various functions under the Act to officers of the State Goods and Services Tax Department via the aforementioned circular.
In the 53rd GST council meeting, there is a suggestion to ease the exemption of interest or penalty or both asked u/s 73 of the GST Act related to the Fiscal years 2017-18, 2018-19, and 2010-20, as per specific conditions.
The council said to draw the provision of these waivers, changes have been carried out in the KGST Act 2017, and Section 128A, w.e.f. 01.11.2024. The claiming scheme benefits process and procedure via the proper officer is illustrated in Rule 164 of the KGST Rules, 2017.
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In the explanation to sub-rule (17) of Rule 164, the objective of the proper officer of this amnesty scheme is, – (a) in cases where the application for waiver of interest, or penalty, or both is made concerning a notice or statement cited in clause (a) of sub-section (1) of Section 128A, will be the proper officer for issuance of order as per section 73; and (b) in cases where the application for exemption of interest, or penalty, or both, is made concerning an older cited in clause (b) or clause (c) of sub-section (1) of section 128A, will be the proper officer referred to in section 79 of the Act.
Under the aforesaid explanation, the proper officer to process the applications obtained concerning a notice or a statement will be the proper officer for the issuance of the order u/s 73, and for the application processing concerning the issued order u/s 73, the proper officer will delegate the operations u/s 73 of the Act.
In the Circular No. 238/32/2024-GST dated 15.10.2024 of the Central Board of Indirect Taxes and Customs, the same case has been clarified.
To transfer the applications received u/s 128A of the Act to the officers of the TPS vertical, Instruction No.06/2025-Kerala SGST dated 15.03.2025 has been issued by this office.
To finish the application processing in the given time by following the provisions of rule 164 it is hereby intended to allocate the functions u/s 79 of the Act to the Deputy State Tax Officer/Assistant State Tax Officers in the Taxpayer Services Verticals so that the applications can be processed by the DSTOs/ASTOs complying with the financial limit established u/s 73 of the Act vide Circular No. 06/2023. Therefore, in these possibilities, the Circular referred to above stands changed as under.
GST Circular No. 5/2023 issued by the Commissioner of State Tax, the following changes apply:
- In Table 1 of Circular No. 5/2023, the words, brackets, and figures “Sub-section (1) of section 79” will be omitted from the third column, against Sl. No. 4.
- In Table 1 of Circular No. 5/2023, within the third column, an entry will be inserted after Sl. No. 5A. Section 74A.
Clause 5B. Provisions under Section 79(1)
This will take effect starting on March 15, 2025.
