Conditional Waiver of Penalty and Interest u/s 128A of GST Act: All You Need To Know

Section 128A was introduced into the Central Goods and Services Tax (CGST) Act, 2017, by the Finance Act (No.2) of 2024. This section provides a conditional waiver of interest and penalties for demand notices issued under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19, and 2019-20. Taxpayers can avail of this waiver if they pay the full amount of tax demanded in the notice by the specified date. The waiver aims to alleviate the burden on taxpayers who faced difficulties during the initial years of GST implementation. The conditions for availing the waiver include timely payment and compliance with prescribed conditions.