The Central Board of Indirect Taxes and Customs has provided clear explanations on various topics regarding the benefits available under a specific section of the CGST Act, 2017. GST Circular No. 248/2025 aims to clarify and help people better understand how to take advantage of these benefits.
On March 27, 2025, the issued clarification has the motive to address the concerns raised by the trade and industry for the execution of the same provision, which was introduced based on the GST council’s suggestions in its 53rd and 54th meetings.
Section 128A was inserted into the CGST Act, along with Rule 164 in the CGST Rules, with effect from November 1, 2024, to provide for a waiver of interest or penalty or both in cases where demands were raised u/s 73 for the period from July 1, 2017, to March 31, 2020.
Before that, the government had furnished Circular No. 238/32/2024-GST on October 15, 2024, citing the aspects of the implementation of these provisions. But the concerns for specific procedural and eligibility issues continued to stay.
CBIC was received various representations from the industry stakeholders for the difficulties faced in availing the benefit of Section 128A, related to the eligibility of cases for benefit under Section 128A, where payment was made through the return in form GSTR-3B instead of FORM GST DRC-03 and the treatment of appeals encircling periods beyond the extent of Section 128A.
The board, in answer, has not furnished additional clarification to ensure constant implementation of the law.
In the circular, the first issue addressed related to whether a taxpayer who had already filed their tax dues via FORM GSTR-3B before the introduction of Section 128A shall be eligible for the benefit.
CBIC, any tax payments made via FORM GSTR-3B before November 1, 2024, will be regarded as valid for claiming the advantage u/s 128A, given that these payments were objected to settle the demand. But for payments incurred after this date, the specific method under rule 164 should be complied with mandating the payments via form GST DRC-03. The eligibility of these cases shall be within the verification by the proper officer.
The second problem is to mention the concerns situations where a taxpayer has obtained a notice, statement, or adjudication order that covers both periods within and beyond the extent of section 128A. In these matters, the board has permitted the taxpayers to take the benefit u/s 128A without withdrawing appeals for periods outside its scope.
The taxpayer has the freedom to submit form SPL-01 or form SPL-02, as applicable, post making the needed tax payments for period covered u/s 128A. The taxpayer on the form submission should notify the appellate authority or tribunal that they wish to take the benefit and do not wish to pursue the plea for the related period.
Thereafter, the appellate authority or tribunal then issues a relevant order for the stay period not covered u/s 128A. The clarification issued in point 6 of the table in Circular No. 238/32/2024-GST, which earlier addressed this issue, has now been withdrawn.
The CBIC Circular, undersigned by Gaurav Singh, Commissioner (GST), has asked that suitable trade notices be issued to publicize these clarifications while also inviting feedback on any problems faced in the implementation of the circular.
