Benefit Under Section 128A is Allowed Even if Payment Made Through GSTR-3B Before 1st November 2024 | Circular

Circular No. 248/05/2025-GST, Dated 27-03-2025

The CBIC has issued a circular clarifying the procedural aspects for availing the waiver of interest and penalty under Section 128A of the CGST Act. Taxpayers who made payments via GSTR-3B before the notification of Section 128A (1st November 2024) are eligible for the waiver of interest and penalty, provided the payment was intended for the demand. However, after the introduction of Section 128A, future payments must be made using the prescribed modes under Rule 164 of the CGST Rule.

Therefore, the CBIC has clarified that cases where tax payments have been made through FORM GSTR-3B prior to the issuance of the demand notice and/or adjudication order, before 1st November 2024, will also be eligible for the benefit under Section 128A of the CGST Act, subject to verification by the proper officer.

Additionally, if a notice or order pertains to both periods covered under Section 128A (FY 2017-2020) and periods outside this scope, taxpayers can file an application (FORM SPL-01 or FORM SPL-02) to claim the benefit for the applicable period. In such cases, taxpayers must intimate his intent to the appellate authority or Tribunal to that he does not intend to pursue the appeal for the periods outside the scope of Section 128A. The Appellate Authority or Tribunal, upon noting the request, shall pass an order as deemed appropriate.

This clarification ensures uniformity in the implementation of the provisions and provides a clear process for taxpayers to follow in availing the benefits.

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