This circular provides detailed guidelines and clarifications on the implementation of Section 128A of the CGST Act, which grants waiver of interest and/or penalty for demands raised under Section 73 pertaining to FY 2017–18, 2018–19, and 2019–20, subject to payment of the full tax amount by 31st March 2025. It explains the applicability of the provision, procedure for filing applications, and processing by tax officers.

Taxpayers can apply electronically in FORM GST SPL-01 or SPL-02 based on whether the case involves a pending notice, an adjudicated order, or an appellate/revisional order. The benefit also extends to cases originally issued under Section 74 but later re-determined under Section 73. Applications must be filed only after withdrawal of any related appeals or writs.

The circular further clarifies that waiver is allowed only when full tax payment is made, but the payable amount can be reduced by excluding disallowed ITC now permissible under the retrospective amendment to Section 16(5) & (6). It also confirms that the benefit applies to CGST, SGST, IGST, and Compensation Cess, including transitional credit cases, but not to late fees, redemption fines, or import-related IGST. Payment can be made via cash or ITC utilization.