Rule 164 Amended to Streamline Partial Appeal Withdrawal u/s 128A | Notification

Notification No. 11/2025-Central Tax, Dated 27-03-2025

The notification amends Rule 164 of the Central Goods and Services Tax (CGST) Rules, 2017, to facilitate the implementation of Section 128A of the CGST Act. The changes include a provision in sub-rule (4) that requires the payment of tax related to the specified period under Section 128A before filing an appeal.

Additionally, a new explanation clarifies that no refund will be granted for any tax, interest, or penalty already paid for the entire period before the commencement of the Central Goods and Services Tax (Second Amendment) Rules, 2025, in cases where the demand includes both the period covered by Section 128A and another period.

Furthermore, sub-rule (7) has been amended to allow taxpayers, where the notice includes tax demands for both the period under Section 128A (1st July 2017 to 31st March 2020) and a period beyond, to partially withdraw the appeal. Taxpayers can inform the appellate authority of their intent to withdraw the appeal for the specified period, and the authority will then pass an order for the remaining period as deemed appropriate.

These amendments provide clarity on the appeal withdrawal process and help taxpayers avail the benefits under Section 128A.

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