Question ID :
44935
185267
I have applied for waiver of interest & penalty for Difference in output tax as per GSTR1 & GSTr3B which was rejected by STO becuase of Para 4.4 of the circular -238-32-2024-GST dt 15th oct 2024.-
Where the tax due has already been paid and the notice or demand orders under Section 73 only pertains to interest and/or penalty involved, the same shall be considered for availing the benefit of section 128A.
However, the benefit of waiver of interest and penalty shall not be applicable in the cases where the interest has been demanded on account of delayed filing of returns, or delayed reporting of any supply in the return, as such interest is related to demand of interest on self-assessed liability and does not pertain to any demand of tax dues and is directly recoverable under sub-section (12) of section 75.
I have decided to file appeal against rejection order and also prepared submission. can you please suggest how can we fight against this objection raised by the GST dept. any case study or draft reply if you have pls share it to me.
Posted by
SAJID ASHIK MULLA
on
Nov 27, 2025
Filed Under
GST
This is a critical and highly technical dispute arising from the amnesty scheme under Section 128A of the CGST Act. The State Tax Officer (STO) has taken a highly restrictive, literal interpretation of Para 4.4 of Circular No. 238/32/2024-GST, attempting to treat a GSTR-1 vs. GSTR-3B mismatch as "delayed reporting of supply" under Section 75(12), thereby denying you the amnesty benefit.
The STO's rejection is legally vulnerable. Because the period in question spans FY 2017-18 to 2019-20, the department cannot retrospectively apply the expanded definition of "self-assessed tax."
Posted by
SIVADAS CHETTOOR on
May 29, 2026