Dated: May 14, 2025
Issued by Team GSTN
In light of the recent implementation of the Waiver Scheme under Section 128A of the CGST Act, taxpayers are advised to take due note of the updated procedures and system functionalities regarding appeal withdrawal within the GST framework. This advisory aims to clarify the technical and procedural aspects that taxpayers must comply with to ensure eligibility under the scheme.
Background: Appeal and Waiver Scheme Context
Section 128A of the CGST Act provides relief to taxpayers by waiving off interest, late fees, and penalties subject to the fulfillment of certain conditions. A key requirement under this waiver scheme is that no appeal against the demand order should be pending before any appellate authority.
To comply with this prerequisite, taxpayers who have filed appeals under Form APL-01 must ensure these appeals are withdrawn where applicable. The GST portal has a defined mechanism for handling such withdrawals through Form APL-01W.
System Functionality for Appeal Withdrawal
The process of appeal withdrawal on the GST portal depends on the timing of withdrawal in relation to the issuance of the final acknowledgment (APL-02) by the Appellate Authority. Here’s how the system behaves in both scenarios:
1. Withdrawal Before Final Acknowledgment (APL-02 Issued):
- Process:
Taxpayer files the withdrawal application using Form APL-01W before the final acknowledgment (APL-02) is issued by the Appellate Authority. - System Response:
The system automatically processes the withdrawal. - Status Update:
The appeal status changes from “Appeal Submitted” to “Appeal Withdrawn” without any manual intervention or approval from the authority.
2. Withdrawal After Final Acknowledgment (APL-02 Issued):
- Process:
Taxpayer files Form APL-01W after the Appellate Authority has issued the final acknowledgment (APL-02). - System Response:
The withdrawal application is forwarded to the Appellate Authority for approval. - Authority Action:
Upon approval by the Appellate Authority, the appeal is officially considered withdrawn. - Status Update:
The portal reflects the appeal status as “Appeal Withdrawn” once the approval is granted.
Relevance for Waiver Scheme Compliance
As per the Waiver Scheme under Section 128A, one of the critical conditions for availing benefits is that no appeal should remain pending before the Appellate Authority against the demand order.
In both the scenarios described above, once the status of the appeal is updated to “Appeal Withdrawn”, the compliance requirement under Section 128A is considered fulfilled.
Required Action for Taxpayers
When filing a waiver application or for those who have already filed the waiver application, the following must be ensured:
- Upload Evidence of Withdrawal:
Taxpayers must upload a screenshot from the appeal case folder showing the status as “Appeal Withdrawn”. - Double-check Status:
Ensure that the portal reflects the correct and updated status before proceeding with the waiver application.
This documentation is necessary for the authorities to verify that the appeal has indeed been withdrawn and the taxpayer qualifies for the benefits of the scheme.
The GSTN portal has streamlined the appeal withdrawal mechanism to facilitate taxpayer compliance with the Waiver Scheme. Taxpayers are urged to follow the above guidelines closely and monitor the status of their appeals to avoid disqualification under Section 128A.
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