Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods.
Section 128A, CGST Act
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The amnesty: interest and penalty on a section 73 demand for FY 2017-18, 2018-19 and 2019-20 are waived if the full tax is paid by the notified date. It covers a notice or statement where no order has been passed, an order where no appellate order has been passed, and an appellate order where no Tribunal order has been passed. Any appeal must be withdrawn, nothing already paid as interest or penalty comes back, and it does not extend to erroneous refunds or to section 74 demands. Procedure is in Rule 164 through FORM SPL-01 or SPL-02.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
Covers only section 73 demands for FY 2017-18, 2018-19 and 2019-20 – not section 74, not erroneous refunds.
The full TAX must be paid by the notified date; interest and penalty are then waived, and nothing already paid as interest or penalty comes back.
Any appeal or writ against the demand must be withdrawn before the application is accepted.
Rule 164 carries the procedure – SPL-01 where no order has been passed, SPL-02 where one has; the officer accepts in SPL-05 or rejects in SPL-07, and a rejection is appealable.
Where a demand covers both eligible and ineligible periods, the eligible part can still be settled – split the demand in the application.
Questions people actually ask
Real questions we get on this provision, answered straight.
Our FY 2018-19 demand is part tax and part interest and penalty. What does the amnesty cost us?+
The full tax, paid by the notified date, and withdrawal of any appeal. In exchange the whole interest and penalty go. Where the tax itself is genuinely disputable the amnesty may not be worth it – but where the tax is payable and interest has run for six years, it usually is.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
3,743 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(1) Notwithstanding anything to the contrary contained in this Act, where any amount of tax is payable by a person chargeable with tax in accordance with,––
(a) a notice issued under sub-section
(1) of section 73 or a statement issued under sub-section
(3) of section 73, and where no order under sub-section
(9) of section 73 has been issued; or
(b) an order passed under sub-section
(9) of section 73, and where no order under sub-section
(11) of section 107 or sub-section
(1) of section 108 has been passed; or
(c) an order passed under sub-section
(11) of section 107 or sub-section
(1) of section 108, and where no order under sub-section
(1) of section 113 has been passed, pertaining to the period from 1st July, 2017 to 31st March, 2020, or a part thereof, and the said person pays the full amount of tax payable as per the notice or statement or the order referred to in clause (a), clause
(b) or clause (c), as the case may be, on or before the date, as may be notified by the Government on the recommendations of the Council, no interest under section 50 and penalty under this Act, shall be payable and all the proceedings in respect of the said notice or order or statement, as the case may be, shall be deemed to be concluded, subject to such conditions as may be prescribed: Provided that where a notice has been issued under sub-section
(1) of section 74, and an order is passed or required to be passed by the proper officer in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court in accordance with the provisions of sub-section
(2) of section 75, the said notice or order shall be considered to be a notice or order, as the case may be, referred to in clause
(a) or clause
(b) of this sub-section: Provided further that the conclusion of the proceedings under this sub-section, in cases where an application is filed under sub-section
(3) of section 107 or under sub-section
(3) of section 112 or an appeal is filed by an officer of central tax under sub-section
(1) of section 117 or under sub-section
(1) of section 118 or where any proceedings are initiated under sub-section
(1) of section 108, against an order referred to in clause
(b) or clause
(c) or against the directions of the Appellate Authority or the Appellate Tribunal or the court referred to in the first proviso, shall be subject to the condition that the said person pays the additional amount of tax payable, if any, in accordance with the order of the Appellate Authority or the Appellate Tribunal or the court or the Revisional Authority, as the case may be, within three months from the date of the said order: Provided also that where such interest and penalty has already been paid, no refund of the same shall be available.
(2) Nothing contained in sub-section
(1) shall be applicable in respect of any amount payable by the person on account of erroneous refund.
(3) Nothing contained in sub-section
(1) shall be applicable in respect of cases where an appeal or writ petition filed by the said person is pending before Appellate Authority or Appellate Tribunal or a court, as the case may be, and has not been withdrawn by the said person on or before the date notified under sub-section (1).
(4) Notwithstanding anything contained in this Act, where any amount specified under sub-section
(1) has been paid and the proceedings are deemed to be concluded under the said sub-section, no appeal under sub-section
(1) of section 107 or sub-section
(1) of section 112 shall lie against an order referred to in clause
(b) or clause
(c) of sub-section (1), as the case may be.]
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
M/s.BIG PEAT COMPANY v. The State Tax Officer
Read the judgment PDF →
L Rajeshwaran v. The Deputy Commercial Tax Officer
Read the judgment PDF →
SHRI SRINIVASA SHETTY v. THE COMMERCIAL TAX OFFICER
Read the judgment PDF →
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2024-08-16 · Insertedbyse
Inserted by section 146 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024 .
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Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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