How to File Waiver of Interest or Penalty under Section 128A on GST Portal | Step-by-Step Guide

Summary

In this video, the speaker explains the procedure for availing the benefits of Section 128A of the GST Act, which offers relief from interest and penalties if taxes are paid before March 31, 2025. The process includes filing the appropriate forms (AE02, AEPL01, AEPL02) within three months of receiving a notice. The speaker elaborates on eligibility, application procedures, and payment processes, emphasizing the importance of submitting the application on the GST portal and following specific guidelines for tax adjustment. The video also highlights the steps involved if queries or rejections arise during the application process.

Takeaways

• 😀 128A provides benefits related to the waiver of interest and penalties if certain conditions are met.
• 😀 To avail the benefits of 128A, you need to follow a special procedure, as outlined by the government.
• 😀 The government issued Circular 238/32/24 on 15th October 2024 to clarify the procedure for availing 128A benefits.
• 😀 Taxpayers who pay their tax dues before 31st March 2025 may receive a waiver of interest and penalties under Section 128A.
• 😀 Applications for the 128A benefit must be filed on the GST common portal using Form AE-02 within 3 months of the 31st March 2025 deadline.
• 😀 If a notice is issued under Section 73(1) or 73(3), or if no orders are passed under Sections 107 or 108, you can apply for the 128A benefit.
• 😀 For cases involving fraud (under Sections 171, 1819, or 1920), applications can also be made if redetermination is required by the authority.
• 😀 In case of a payment demand, the tax amount should be paid via the Electronic Liability Register and adjusted through DRC-03.
• 😀 When filing an application, ensure to meet the 3-month deadline, with the final date for filing being June 2025.
• 😀 The officer will review the application, and if satisfied, will issue an order (SPL-05). If not satisfied, the application may be rejected (SPL-07).

Q & A

What is Section 128A of the GST Act?

Section 128A of the GST Act provides benefits related to the waiver of interest and penalties for taxpayers who pay their tax amounts before 31st March 2025. It outlines a special procedure for availing these benefits.

What is the main benefit of Section 128A?

The main benefit of Section 128A is the waiver of interest and penalties on the tax amounts, provided the tax is paid before 31st March 2025.

What is the special procedure to avail the benefits of Section 128A?

To avail the benefits, taxpayers need to follow a special procedure involving filing applications through the GST portal. They must file the appropriate forms (APL 02 or SPL 02) depending on the nature of the order or notice issued.

Which circular clarifies the process for availing Section 128A benefits?

Circular 238/32/24, issued on 15th October 2024, provides detailed clarifications regarding Section 128A and the procedure to avail its benefits.

What types of notices or orders qualify for the benefits under Section 128A?

Notices under Section 73 (sub-sections 1, 3, and 9) and certain fraud cases (under sections 171, 1819, or 1920) may qualify for the benefits of Section 128A if no appeal or revision orders have been issued.

What is the timeline for filing the application to avail Section 128A benefits?

The application to avail the benefits of Section 128A must be filed within three months from 31st March 2025, i.e., by 30th June 2025.

Which form needs to be filed to avail the Section 128A benefit?

The required form to file the application is SPL 02 (or APL 02) on the GST common portal. If the notice is under Section 73, the form APL 01 should be filed.

What should be done if there is no order under Section 107 or 108?

If there is no order issued under Section 107 or 108 by the appellate authority or revision authority, the taxpayer can proceed to file the application for benefits using the appropriate form under Section 128A.

How should the tax payment be made to avail the benefits of Section 128A?

The tax payment must be made through the Electronic Liability Register. The taxpayer should ensure that the demand amount is debited in the register, and the details will be adjusted using form DRC 03.

What happens if the application is rejected?

If the application is rejected, the taxpayer will receive a rejection order (SPL 07) and may need to follow the process again or file appeals if applicable.