The Central Board of Indirect Taxes and Customs (CBIC) on February 07, 2025, issued instructions regarding Procedures to be followed in department appeals filed against interest and/or penalty only, related to Section 128A of the CGST Act, 2017.
The following has been stated: -
•As per Section 128A of the CGST Act, taxpayers who have paid the full tax amount but have disputes regarding interest or penalty can avail of benefits to waive these amounts, provided they meet specific conditions.
•If the department has filed an appeal due to incorrect interest calculation or penalty issues, the appeal may be withdrawn, and the taxpayer can still avail of the benefit of Section 128A.
•The decision aims to reduce litigation and avoid denying benefits due to technicalities.
The detailed notification is given in the document below.
[Notification No. 02/2025-GST]
