Important Keywords: Notification No. 11/2025 – Central Tax, CGST Second Amendment Rules 2025, Rule 164 GST, Section 128A, GST refund denial, GST appeal withdrawal, Finodha GST support,
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Table of Contents
[No. CBIC-20016/12/2025-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
New Delhi, the 27th March, 2025.
Notification No. 11/2025 – Central Tax: Seeks to notify Central Goods and Services Tax (Second Amendment) Rules 2025
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R… (E).–In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:—
(1) These rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.
- In the Central Goods and Services Tax Rules, 2017,–
- in rule 164, –
- in sub-rule (4), after the words “after payment of the full amount of tax”, the words “related to period mentioned in the said sub-section and” shall be inserted.
- after sub-rule (4), the following Explanation shall be inserted, namely: –
“Explanation, – No refund shall be available for any tax, interest, and penalty, which has already been discharged for the entire period, prior to the commencement of the Central Goods and Services Tax (Second Amendment) Rules, 2025, in cases where a notice or statement or order mentioned in sub-section (1) of section 128A, includes a demand of tax, partially for the period mentioned in the said sub-section and partially for a period other than mentioned in the said sub-section.”.
- in rule 164, in sub-rule 7, after the first proviso, the following proviso shall be inserted, namely: – “Provided further that where the notice or statement or order mentioned in sub-section(1) of section 128A of the Act includes demand of tax, partially for the period mentioned in the said sub-
section and partially for the period other than that mentioned in the said sub-section, the applicant instead of withdrawing the appeal, shall intimate the appellate authority or Appellate Tribunal that he does not wish to pursue the appeal for the period mentioned in the said sub-section and the relevant authority shall, after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as he thinks just and proper.
Explanation,– For the removal of doubt, it is clarified that the appeal application shall be deemed to have been withdrawn to the extent of the said intimation for the period from the 1st July, 2017 to the 31st March, 2020 or part thereof, for the purpose of sub-clause (3) of section 128A.”
(Raushan Kumar)
Under Secretary to the Government of India.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub- section(i), vide number G.S.R. 610(E), dated, the 19th June 2017 and was last amended, vide number G.S.R. 72(E), dated the 23rd January, 2025.
📚 Frequently Asked Questions (FAQs): Notification No. 11/2025 – Central Tax
Q1: What is Notification No. 11/2025 – Central Tax about?
Answer:
This notification implements the Central Goods and Services Tax (Second Amendment) Rules, 2025, amending Rule 164 of CGST Rules, 2017. The amendments refine the procedure around refund eligibility and withdrawal of appeals in matters involving Section 128A.
—
Q2: When did these amended rules come into effect?
Answer:
The rules came into force on the date of publication in the Official Gazette, i.e., 27 March 2025.
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Q3: What does the newly inserted explanation in Rule 164(4) mean?
Answer:
It clarifies that no refund shall be allowed for tax, interest, or penalty already discharged for the entire period, even if the tax demand partially overlaps with the Section 128A period. This applies when demand spans both covered (1 July 2017 to 31 March 2020) and non-covered periods.
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Q4: What change has been introduced to Rule 164(7)?
Answer:
A new proviso allows a taxpayer to continue the appeal for the portion of tax demand outside the Section 128A period, even if they forego relief under Section 128A for the covered period. The authority will treat the appeal as withdrawn only for the covered period.
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Q5: What is Section 128A of the CGST Act?
Answer:
Section 128A provides conditional waiver of interest, penalty, or late fees for specified periods (1 July 2017 to 31 March 2020). This provision was introduced to resolve old disputes and promote ease of doing business.
📌 Learn more: https://finodha.in/gst-compliance/
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Q6: Why does this clarification matter to taxpayers?
Answer:
Without this clarification, taxpayers might lose relief or refund eligibility due to overlapping tax demands. The rule amendment ensures clarity in handling partially overlapping periods in notices or orders.
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Q7: Does the taxpayer need to withdraw the entire appeal to avail benefit?
Answer:
No❌. With the updated Rule 164(7), the taxpayer can keep pursuing the appeal for the period outside Section 128A while waiving it for the covered period.
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Q8: Can taxpayers still apply for a refund if they already paid under protest?
Answer:
No🚫. The Explanation under Rule 164(4) clearly states that no refund shall be granted for payments already made for the entire period, even if part of the demand falls within Section 128A’s timeframe.
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Q9: Is this amendment applicable retrospectively?
Answer:
No, it applies from the date of notification (27 March 2025) and covers cases pending under appeal or litigation as on that date.
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Q10: How can Finodha assist taxpayers impacted by this amendment?
Answer:
Finodha offers:
✅ Appeal tracking and strategy
✅ Expert opinion on applicability of Section 128A
✅ GSTR-9/9C corrections
✅ Assistance in identifying ineligible refund zones
✅ End-to-end representation before appellate authorities
🧾 Related Finodha Resources:
• GST Registration: https://finodha.in/online-gst-registration/
• Business Setup: https://finodha.in/setup-business/
• ITR Filing: https://finodha.in/income-tax-return-filing-online/
• Private Limited Compliance: https://finodha.in/roc-compliance-for-private-limited-company/
• Digital Signature: https://finodha.in/online-dsc-digital-signature-certificate/
✅ Summary:
Notification No. 11/2025 – Central Tax strengthens procedural fairness for partially overlapping tax demands. It enables partial appeal withdrawal while denying refunds for settled periods—boosting clarity and reducing litigation confusion.
Download PDF: Notification No. 11/2025 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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