Substantial compliance with GST waiver payment conditions may cover timely tax payment under an incorrect tax head.

Payment of the full tax liability within the prescribed period under an incorrect GST head may constitute substantial compliance with the payment condition for waiver under Section 128-A. The notes distinguish substantive conditions, which require strict compliance, from procedural requirements, for which substantial compliance is sufficient. Where tax determined under Section 73 was fully discharged on time, an erroneous remittance under the IGST head despite no IGST liability being a clerical payment-head error does not undermine satisfaction of the substantive tax obligation. The waiver application requires fresh consideration.

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Issues: Whether payment of the full tax liability under an incorrect GST head, instead of the appropriate CGST and SGST heads, constitutes substantial compliance with the payment condition for waiver under Section 128-A.

Analysis: Waiver or exemption provisions require strict compliance with substantive conditions, whereas substantial compliance suffices for procedural requirements. The entire tax liability pursuant to the order under Section 73 was discharged within the prescribed time. The erroneous remittance under the IGST head, where no IGST liability existed, was a clerical error concerning the payment head and did not detract from discharge of the substantive tax obligation.

Conclusion: Payment under the incorrect tax head amounted to substantial compliance with the waiver-payment requirement; the waiver application requires fresh consideration.

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