Section 128A of GST Act: Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods

Amended and updated notes on section 128A of CGST Act, 2017. Detail discussion on provisions and rules related to Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods.

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Amended and updated notes on section 128A of CGST Act, 2017. Detail discussion on provisions and rules related to Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods.

Chapter XIX (Sections 122138) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to offences and penalties. Section 128A of CGST 2017 provides for Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods.

Recently, we have discussed in detail section 128 (Power to waive penalty or fee or both) of CGST Act 2017. Today, we learn the provisions of section 128A of Central GST Act 2017.

Section 128A of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 17/2024-Central Tax, S.O. 4253(E), dated 27.09.2024.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.XIX
Chapter NameOffences and Penalties
Section No.128A
Section NameWaiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods
Updated 2025 EditionGST Law Book PDF

Section 128A of Central GST – Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods1

Section 128A of CGST Act 2017 shall come into force on 01.11.2024 vide Notification No. 17/2024-Central Tax, S.O. 4253(E), dated 27.11.2024.

Section 128A(1) of CGST Act

Notwithstanding anything to the contrary contained in this Act, where any amount of tax is payable by a person chargeable with tax in accordance with,––

(a) a notice issued under sub-section (1) of section 73 or a statement issued under sub-section (3) of section 73, and where no order under sub-section (9) of section 73 has been issued; or
(b) an order passed under sub-section (9) of section 73, and where no order under sub-section (11) of section 107 or sub-section (1) of section 108 has been passed; or
(c) an order passed under sub-section (11) of section 107 or sub-section (1) of section 108, and where no order under sub-section (1) of section 113 has been passed,

pertaining to the period from 1st July, 2017 to 31st March, 2020, or a part thereof, and the said person pays the full amount of tax payable as per the notice or statement or the order referred to in clause (a), clause (b) or clause (c), as the case may be, on or before the date, as may be notified by the Government on the recommendations of the Council, no interest under section 50 and penalty under this Act, shall be payable and all the proceedings in respect of the said notice or order or statement, as the case may be, shall be deemed to be concluded, subject to such conditions as may be prescribed:

Provided that where a notice has been issued under sub-section (1) of section 74, and an order is passed or required to be passed by the proper officer in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court in accordance with the provisions of sub-section (2) of section 75, the said notice or order shall be considered to be a notice or order, as the case may be, referred to in clause (a) or clause (b) of this sub-section:

Provided further that the conclusion of the proceedings under this sub-section, in cases where an application is filed under sub-section (3) of section 107 or under sub-section (3) of section 112 or an appeal is filed by an officer of central tax under sub-section (1) of section 117 or under sub-section (1) of section 118 or where any proceedings are initiated under sub-section (1) of section 108, against an order referred to in clause (b) or clause (c) or against the directions of the Appellate Authority or the Appellate Tribunal or the court referred to in the first proviso, shall be subject to the condition that the said person pays the additional amount of tax payable, if any, in accordance with the order of the Appellate Authority or the Appellate Tribunal or the court or the Revisional Authority, as the case may be, within three months from the date of the said order:

Provided also that where such interest and penalty has already been paid, no refund of the same shall be available.

Section 128A(2) of CGST Act

Nothing contained in sub-section (1) shall be applicable in respect of any amount payable by the person on account of erroneous refund.

Section 128A(3) of CGST Act

Nothing contained in sub-section (1) shall be applicable in respect of cases where an appeal or writ petition filed by the said person is pending before Appellate Authority or Appellate Tribunal or a court, as the case may be, and has not been withdrawn by the said person on or before the date notified under sub-section (1).

Section 128A(4) of CGST Act

Notwithstanding anything contained in this Act, where any amount specified under sub-section (1) has been paid and the proceedings are deemed to be concluded under the said sub-section, no appeal under sub-section (1) of section 107 or sub-section (1) of section 112 shall lie against an order referred to in clause (b) or clause (c) of sub-section (1), as the case may be.

  1. Section 128A newly inserted w.e.f. 1st November, 2024 by the Finance (No. 2) Act, 2024 vide Notification No. 17/2024-Central Tax, S.O. 4253(E), dated 27.09.2024. ↩︎


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