Detailed Summary of the Process of Waiver of Interest/Penalty Under Section 128A of CGST Act
| Step | Action | Form | Additional Notes |
|---|---|---|---|
| 1. Application Filing | Applicant files application for waiver of interest or penalty. | FORM GST SPL-01 (for waiver of interest/penalty or both where no final order has been passed) or FORM GST SPL-02 (for waiver of interest/penalty where demand order u/s 73 have been issued) | The application should be filed electronically on the common portal. |
| 2. Examination | Proper officer examines the application to determine if it meets the eligibility criteria for waiver under Section 128A. | N/A | Proper officer in case of GST SPL-01 would be the proper officer who will issue the order under section 73 where as in case of GST SPL-02 would be the proper officer for recovery under section 79. |
| 3. Notice of Rejection | If the proper officer finds the application to be ineligible, they issue a notice to the applicant explaining the reasons for rejection. | FORM GST SPL-03 | The notice must be issued within three months of receiving the application. |
| 4. Applicant’s Reply | The applicant has one month from the date of receiving the rejection notice to file a reply explaining why the waiver should be granted. | FORM GST SPL-04 | The reply must be filed electronically on the common portal. |
| 5. Order | The proper officer issues an order either approving or rejecting the waiver application. | FORM GST SPL-05 (for approval) or FORM GST SPL-07 (for rejection) | The order should be issued within three months of receiving a FORM GST SPL-04 reply. If no reply is received, the order should be issued within four months. |
| 6. Default Order | If no order is issued within the prescribed time limit, the application is deemed to be approved, and proceeding shall be deemed to be concluded. | N/A | This is a default provision that ensures that applicants do not suffer undue delays in the waiver process. |
| 7. Summary of Order | In cases where an application for waiver of interest or penalty or both was filed in FORM GST SPL-01 and an order approving the said application is issued by the proper officer in FORM GST SPL-05, then a summary of order in FORM GST DRC-07 need not be issued on the common portal. However, in cases where an order in FORM GST SPL-05 or in FORM GST SPL-06, as the case may be, has been issued approving an application filed in FORM GST SPL-02, the liability earlier created in the ELR – Part II by the demand order or the appellate order, as the case may be, shall stand modified accordingly. | N/A | N/A |
| 8. Appeal against adverse Order | Appeal can be filed against adverse order as per section 107 and order of Appellate Authority shall be issued in form SPL-06 | Form GST SPL-06 | Appeal must be filed within time limit specified under section 107. |
DISCLAIMER:
The information contained herein is in summary form and is prepared based on the provisions of GST and allied laws and related Rules, Circulars, Notifications therein. For details, please refer the relevant provisions. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.
To read and download the note, please click on the button.
About Our GST Services
DPNC Global LLP is a full service consulting firm providing multi-disciplinary services to clients ranging from MNCs, Indian Corporates from across industries to Family Offices and UHNIs, both in and outside India.
Our GST & Indirect Tax Services team focuses on resolving practical issues faced by taxpayers and businesses while ensuring due compliance with complex legislation. Our services extend from timely and systematic support for GST compliances to advisory on a wide range of contemporary indirect tax issues and GST litigation support.
Our team of GST Consultants possesses in depth experience across diverse sectors and offer tailored solutions for tax optimization while ensuring due compliance with this complex and dynamic legal transaction regime law. To know more about our services, visit https://dpncglobal.com/gst-indirect-tax/