The newly implemented Section 128A of the CGST Act, effective November 1, 2024, allows taxpayers to obtain conditional waivers on interest and penalties related to certain tax demands if they pay the full tax amount by March 31, 2025. This applies to cases with pending notices, adjudicated orders without appeals, and re-determined cases for tax periods from July 1, 2017, to March 31, 2020. Rule 164 outlines the procedures for these waivers. Taxpayers are encouraged to pay the required tax before the deadline and can request early hearings from appellate authorities to potentially qualify for the waivers by reassessing under Section 73 if fraud criteria are not met. An example letter is provided for taxpayers to initiate expedited hearings to alleviate penalties and interest.
Request for Early Hearing of Appeal for Waiver of Interest & Penalties (Section 128A)
To benefit from the waiver, taxpayers should consult with their tax advisor and submit their request to the First Appellate Authority before the deadlines.
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