applicability pf section 128A where only Interest/penalty is due

[SUSHIL BANSAL]

Dear experts,

for fy 17-18-section 73-Excess ITC claimed & reversed in 3B & accordingly order passed that as the excess ITC claimed already reversed the same is appropriated in Govt account & only Interest & penalty demanded in the order. Appeal field we have withdrawn.

Plz guide whether we are eligible for benefit u/s 128A, as while filing 128A the form asks details of tax paid through DRC 03/03A.

further for the same year some outward tax was short paid & we paid Tax & Int. before passing the order & hence in the order it was stated that as the tax & int. already paid, the same is appropriated in Govt account & only penalty demanded. Appeal field we have withdrawn.

Plz guide whether we are eligible for benefit u/s 128A, as no tax tax was due in the order (after the appropriation).

[Sadanand Bulbule]

Refer CBIC Circular No. 238/32/2024-GST dated 15/10/2024. You are eligible.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Just for discussion sake

Sir, The ultimate purpose of ANY Amnesty Scheme is to recover tax/duty locked up in litigation at various stages and in various fora. The Govt. waives interest and penalty for the sake of recovery of such tax and, if tax has been paid voluntarily prior to the issuance of SCN and before the issuance of Notification for Amnesty Scheme, then what should be the fate of interest and penalty ?

Your opinion please.

[Sadanand Bulbule]

Dear Sirji

There is a need to realign "harmonious strings" between Section 128A and the CBIC Circular No.238/32/2024-GST dated 15/10/2024. 

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, Your observations are full of substance. Any Amnesty Scheme cannot be without conditions. Fog will be removed only after the issuance of Form GST SPL-05 by the Proper Officer.

[Shilpi Jain]

There was ambiguity on this aspect which has now been clarified and made clear by the above mentioned circular

[SUSHIL BANSAL]

In two of our such cases wherein only penalty amount is unpaid, we are not finding order ID & other related tabs while filing SPL-2 of these orders.

AI Summary

Amnesty under Section 128A clarified: interest and penalty-only liabilities can qualify following circular guidance.
The headnote clarifies that amnesty eligibility extends to cases where only interest and penalty remain payable after tax has been paid or appropriated and appeals withdrawn; administrative circular guidance confirms such liabilities fall within the amnesty framework, conditional on compliance with prescribed procedural requirements and resolution of form- and portal-related filing issues.