This circular provides clarifications to ensure uniform implementation of Section 128A of the CGST Act, 2017, which allows waiver of interest or penalty for demands raised under Section 73 for the period 1st July 2017 to 31st March 2020.

It clarifies that taxpayers who paid tax through GSTR-3B before 1st November 2024 (the date on which Section 128A came into effect) are eligible for benefits under this section, provided such payment was intended to cover the demand. However, payments made on or after 1st November 2024 must comply with the procedure prescribed under Rule 164 through FORM DRC-03.

For cases where the demand period is partially covered under Section 128A, taxpayers may pay the eligible portion, file FORM SPL-01 or SPL-02, and withdraw appeals for that period while continuing appeals for the remaining period. The earlier clarification in Circular No. 238/32/2024-GST (para 4, point 6) stands withdrawn.