The introduction of Rule 164 in the CGST Rules, 2017, marks a significant development for taxpayers dealing with old tax liabilities. In its 54th meeting on September 9, 2024, the GST Council recommended a waiver of interest and penalty for tax demands arising under Section 73 of the CGST Act, applicable to FYs 2017-18, 2018-19, and 2019-20.
Following this, the CBIC issued Notification No. 21/2024 on October 8, 2024, detailing the process for availing this waiver. The final date for payment is March 31, 2025, and the notification outlines the forms and steps required to complete the procedure.
The CBIC’s notification also clarifies cases where tax demands under Section 74 will be treated under Section 73 for the purpose of this waiver, providing further clarity to registered persons.
Table: Summary of Important Dates and Classes of Registered Persons for Waiver Availment
| Sl. No. | Class of Registered Person | Date for Waiver of Interest and Penalty |
|---|---|---|
| 1 | Registered persons to whom a notice or statement or order, referred to in clauses (a), (b), or (c) of Section 128A, has been issued. | March 31, 2025 |
| 2 | Registered persons with notices issued under Section 74 and orders passed as per Section 75 to redetermine tax as per Section 73. | Six months from the issuance of the redetermined order |
The GST Council‘s 54th meeting recommendations and subsequent CBIC Notification No. 21/2024 provide significant relief to taxpayers dealing with past tax liabilities under Section 73 of the CGST Act. The procedure outlined under Rule 164 and the extended payment date of March 31, 2025, allow taxpayers to resolve their outstanding liabilities without the burden of additional interest or penalties. This move demonstrates the government’s commitment to easing compliance for businesses, especially those affected by past GST provisions.
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