Important Keywords: Circular No. 248/05/2025 – GST, Section 128A CGST, GSTR-3B vs DRC-03, GST penalty waiver, CGST waiver 2017-2020, SPL-01 form, GST appellate withdrawal,
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Circular No. 248/05/2025 – GST
F. No. CBIC-20001/14/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
North Block, New Delhi,
Dated: 27th March 2025
Circular No. 248/05/2025 – GST: Various issues related to availment of benefit of Section 128A of the CGST Act, 2017
To,
All the Principal Chief Commissioners/ Chief Commissioners
All the Principal Directors General/ Directors General
Madam/Sir,
Subject: Various issues related to availment of benefit of Section 128A of the CGST Act, 2017-reg.
Based on the recommendations of the GST Council made in its 53rd and 54th meetings, a new section 128A was inserted in the Central Goods and Services Tax Act,2017 (hereinafter referred to as CGST Act, 2017) and Rule 164 has been inserted in the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as CGST Rules, 2017) w.e.f. 1st November 2024 to provide for waiver of interest or penalty or both relating to demands raised under Section 73 for the period from 1st July 2017 to 31st March 2020. In this regard, circular No. 238/32/2024-GST dated 15th October 2024 has also been issued clarifying various issues related to implementation of the said provisions.
2. Representations have been received from trade and industry highlighting certain issues being faced in availing the benefit provided under section 128A of the CGST Act, 2017 such as eligibility of cases for benefit under section 128A, where payment has been made through GSTR-3B instead of DRC-03 and treatment of withdrawal of appeals filed by the taxpayer against consolidated adjudication order covering periods beyond the one specified under section 128A of the CGST Act, 2017 for the purpose of availing the said benefit.
3. Accordingly, in view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, 2017, hereby clarifies the issues detailed hereunder.
4. Unless otherwise specified, all the sections mentioned in this circular refer to sections of the CGST Act, 2017 and all the rules mentioned herein refer to the rules of CGST Rules, 2017.
4.1 Issue 1: Whether the cases where tax has been paid through return in FORM GSTR-3B instead of through FORM GST DRC-03, prior to the notification of section 128A i.e.1st November 2024, would be eligible for the benefit under section 128A of the CGST Act?
4.1.1 Representations have been received seeking clarification as to whether cases where payment has been made through FORM GSTR 3B, before coming into force of section 128A into force, i.e. 1st November 2024, are eligible for benefit provided under said section.
4.1.2 The matter has been examined. Vide circular No. 238/32/2024-GST dated 15th October, 2024, it was clarified that any amount paid towards the said demand prior to the date notified under sub-section (1) of section 128A i.e. 1st November 2024, shall be considered as payment made towards the amount payable under sub- section (1) of Section 128A, as long as the said amount has been paid prior to 1st November 2024 and was intended to be paid towards the said demand.
4.1.3 Further, rule 164 (1) provides that in order to avail the benefit under section 128A, payments are to be made in FORM GST DRC-03 towards the tax demanded in respect of a notice or a statement mentioned in section 128A (1) (a) and rule 164(2) provides that tax payment shall mandatorily be made only by crediting the amount in the electronic liability register against the debit entry created in respect of orders mentioned in clauses (b) and (c) of sub-section (1) of section 128A. The said sub-rule also provides the procedure to be followed for cases where payment has already been made through FORM GST DRC-03.
4.1.4 From the examination of the above provisions, it is clarified that a taxpayer who has made the payment through FORM GSTR-3B before the date of coming into force of section 128A i.e. 01st November 2024, shall also be eligible to avail the benefit under the said section. However, any taxpayer who intends to avail the benefit of the said provision on or after the said section comes into force, i.e.1st November 2024 shall be required to make payments necessarily through the modes as prescribed under rule 164 of the CGST Rules.
4.1.5 Therefore, it is clarified that the cases where the payment of tax has been made through FORM GSTR 3B prior to the issuance of demand notice and/or adjudication order before the date 1st November 2024, shall also be eligible for benefit under section 128A of the CGST Act, subject to verification by the proper officer.
4.2 Issue 2: Whether (i) the entire amount of tax demanded is required to be discharged and (ii) the appeal is required to be withdrawn for the entire period, where notices/statements/orders issued to taxpayers, pertains to period covered partially under Section 128A and partially by those outside it.
4.2.1 In cases where the notice/statement or order etc. pertains to the period partially covered under Section 128A and partially beyond the said period, Rule 164 (4) and proviso to Rule 164(7) have been amended to allow the taxpayer to file an application under FORM SPL-01 or FORM SPL-02 as the case may be after making payment of his tax liability for the periods covered under section 128A.
The taxpayer after filing FORM SPL 01 or FORM SPL-02 as the case may, shall intimate the appellate authority or Tribunal his intent to avail the benefit of Section 128A and that he does not intend to pursue the appeal for the period covered under the said Section i.e. FY 2017-18 to 2019-20. The Appellate Authority or Appellate Tribunal as the case may, shall after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as it thinks just and proper.
4.2.2. Clarification issued vide point 6 of the Table at para 4 of circular No. 238/32/2024-GST dated 15th October 2024 is accordingly withdrawn.
5. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
6. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board.
Yours faithfully,
(Gaurav Singh)
Commissioner (GST)
Frequently Asked Questions (FAQs): Circular No. 248/05/2025 – GST
Q1: What is Section 128A of the CGST Act about?
Answer:
Section 128A allows for a waiver of interest and/or penalty for GST demands raised under Section 73 of the CGST Act for the period 1st July 2017 to 31st March 2020. This benefit applies if certain conditions are met and is supported by Rule 164 under CGST Rules, effective from 1st November 2024.
🧾 Finodha can guide you through penalty waiver claims: https://finodha.in/gst-compliance/
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Q2: What does Circular No. 248/05/2025-GST clarify?
Answer:
It addresses issues raised by taxpayers regarding:
Whether payments made via GSTR-3B qualify for the waiver.
Whether full appeal withdrawal is needed when demands span pre- and post-128A periods.
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Q3: Are payments made via GSTR-3B eligible for the waiver under Section 128A?
Answer:
✅ Yes, if the payment was made via GSTR-3B before 1st Nov 2024 and intended toward the GST demand under Section 73 for FY 2017–2020, it qualifies for the benefit under Section 128A.
⛔ Post 1st Nov 2024, payments must be made strictly via FORM DRC-03 or as per Rule 164.
📌 Pro Tip: Always document intent clearly when paying before notification dates.
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Q4: What if a taxpayer received a consolidated demand order covering periods before and after FY 2017–20?
Answer:
Such taxpayers can still avail the benefit under Section 128A for the eligible period (FY 2017–18 to FY 2019–20) by:
Filing FORM SPL-01 or SPL-02.
Informing the Appellate Authority/Tribunal that they won’t pursue the appeal for the 128A-covered period.
🔁 The tribunal can then pass orders for remaining periods outside 128A.
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Q5: Do taxpayers have to withdraw the entire appeal to avail benefits under Section 128A?
Answer:
❌ No. Partial withdrawal of appeal is allowed for periods under Section 128A (FY 2017–2020). The remaining appeal for periods outside that scope can still proceed.
📄 This is a major relief for cases with mixed period adjudication.
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Q6: What forms are relevant for availing the benefit under Section 128A?
Answer:
🧾 FORM DRC-03 (for post-notification tax payments)
📝 FORM SPL-01 / SPL-02 (application for benefit)
These must be used in accordance with Rule 164 provisions.
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Q7: What happens if I paid GST under GSTR-3B but never filed FORM DRC-03?
Answer:
If your payment was made before 1st November 2024 and intended toward a demand covered under Section 128A, it is still valid—even if not routed via DRC-03.
💼 Verification by a GST officer will confirm eligibility.
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Q8: What was withdrawn from earlier guidance (Circular 238)?
Answer:
Point 6 of para 4 in Circular No. 238/32/2024-GST has been withdrawn. The revised process now allows partial appeal handling and new form procedures (SPL-01/SPL-02) to facilitate 128A benefit utilization.
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Q9: Is interest and penalty completely waived under Section 128A?
Answer:
Yes, but only for demands raised under Section 73 for the period FY 2017–18 to FY 2019–20. Full tax must be paid; only the penalty/interest is waived.
📢 Get your waiver claim validated at Finodha: https://finodha.in/gst-return-filing/
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Q10: What should I do next if I qualify under Section 128A?
Answer:
✔️ Identify demand notices under Section 73 (FY 2017–20)
✔️ File SPL-01/SPL-02 as applicable
✔️ Pay tax dues using correct forms
✔️ Withdraw appeal (partially, if applicable)
✔️ Retain proof of payment intent if via GSTR-3B
📌 Need help? Finodha GST experts can file for you → www.Finodha.in
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✅ Final Summary:
Circular 248/05/2025 – GST eases procedural bottlenecks and enables more taxpayers to benefit from the 128A waiver scheme. Businesses that acted in good faith before 1st Nov 2024 via GSTR-3B will not be penalized for technical form limitations.
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🔗 GST Expert Help: https://finodha.in/gst-compliance/
🧾 Return Filing Services: https://finodha.in/gst-return-filing/
🏢 MSME & ROC Services: https://finodha.in/online-udyam-udyog-aadhar-msme-registration/
💼 Business Setup: https://finodha.in/setup-business/
Download PDF: Circular No. 248/05/2025 – GST
More Information: https://taxinformation.cbic.gov.in/
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