The Department of Commercial Taxes, Govt. of Karnataka on March 28, 2025, notified regarding the various issues related to the availment of the benefit of Section 128A of the Karnataka GST Act, 2017.
The following has been stated namely: -
• Representations have been received from trade and industry regarding issues in availing benefits under Section 128A of the Karnataka GST Act, 2017. Key concerns include eligibility for payment via GSTR-3B instead of DRC-03 and the treatment of appeal withdrawals against consolidated adjudication orders covering periods beyond those specified under Section 128A.
• Accordingly, given the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Karnataka GST Act, 2017, hereby clarifies the issues detailed hereunder.
Issue 1: Whether the cases where tax has been paid through return in FORM GSTR-3B instead of through FORM GST DRC-03, before the notification of section 128A, i.e., November 01, 2024, be eligible for the benefit under section 128A of the Karnataka GST Act?
• Representations have been received seeking clarification as to whether cases where payment has been made through FORM GSTR 3B before coming into force of section 128A into force, i.e., 1st November 2024, are eligible for the benefit provided under said section.
• It is clarified that the cases where the payment of tax has been made through FORM GSTR 3B before the issuance of demand notice and/or adjudication order before the date November 01, 2024, shall also be eligible for benefit under section 128A of the Karnataka GST Act, subject to verification by the proper officer.
Issue 2: Whether (i) the entire amount of tax demanded is required to be discharged and (ii) the appeal is required to be withdrawn for the entire period, where notices/statements/orders issued to taxpayers, pertain to the period covered partially under Section 128A and partially by those outside it.
• It is stated that amendments to Rule 164(4) and the proviso to Rule 164(7) now allow taxpayers to file FORM SPL-01 or SPL-02 after paying tax liability for periods covered under Section 128A. Taxpayers must inform the appellate authority or Tribunal of their intent to avail benefits under Section 128A and withdraw appeals for FY 2017-18 to 2019-20. The authority will then pass appropriate orders for periods beyond Section 128A.
[Notification no. - KSA/GST.CR-05/2 019 -20 (Vol-v)]
