Waiver of penalty or fee enables targeted relief from GST late fees and penalties for specified return-filing failures. Power to waive penalty or fee under section 128 allows the government to exempt specified classes of taxpayers from penalties and late fees under the Act where notified mitigating factors apply. The government has used that power to issue notifications prescribing full or partial waiver or reduction of late fees for specified GST return forms and filing periods and to set administrative mechanisms, including an IT grievance redressal process, to address technical obstacles to compliance.