Summary: Recent amendments to GST provisions under Sections 16 and 128A introduce significant updates, particularly affecting Input Tax Credit (ITC) claims and tax relief. The Supreme Court upheld Section 16(4) in the Safari Retreat case, affirming the government’s authority to restrict ITC claims. Additionally, Section 16(5) set a deadline of November 30, 2021, for ITC claims from fiscal years 2017-18 to 2020-21. Section 16(6) specifies that if a canceled GST registration is later restored, the taxpayer can reclaim ITC by the earlier of November 30 following the financial year or 30 days from the date of revocation. These amendments allow Section 16 updates to be applied in GST proceedings under Sections 73 and 74. Section 128A introduces relief on interest and penalties for FY 2017-18, 2018-19, and 2019-20. Eligibility requires full tax payment by March 31, 2025, and withdrawal of appeals related to demands under Section 73. Taxpayers can file relief applications using Form SPL-02 within six months from the date of receiving an appellate decision modifying a fraud-based demand (Section 74) to a regular one (Section 73). Section 128A excludes certain penalties, including those for late filing. SPL forms are provided for procedural submissions and appeals, with separate applications required for multiple notices. Section 128A relief excludes demands for erroneous refunds and penalties on late filings.
Summarised Bullet Points for Easy understanding on Recent Amendments under Section 16(5), 16(6) and 128A of CGST Act, 2017
1) Section 16(4) : Hon’ble Supreme Court – Safari Retreat Case : Section 16(4) is valid and Government has power to impose restrictions on ITC.
2) Section 16(5): The due date to avail the ITC for FY 2017-18 to 2020-21 is 30.Nov.2021.
3) Section 16(6): Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked, the said person shall be entitled to take the input tax credit –
i) upto 30th day of November following the financial year or annual return whichever is earlier or
ii) within thirty days from the date of order of revocation of cancellation of registration for all the returns pending from the date of cancellation till revocation of registration.
Above amendments of Section 16(4), 16(5) and 16(6) can be used in any proceeding of GST like Section 73, 74 etc
4) Section 128A : Relief from interest and penalty
Applicable for : FY 2017-18, 2018-19 and 2019-20 only.
– Basic Conditions
i) pay the full amount of tax demanded upto 31.03.2025 ,
ii) for demand issued under Section 73 and
iii) appeal should be withdrawn, if any.
– Tax is payable in following cases :
– Where there is change in Section from 74 to 73 due to non establishment of charges of fraud etc by the Appellate Authority, Tribunal, Court then Application in SPL-02 for applying Section 128A within six months from the date of communication of order. Rule 164(6)
Interest and Penalty already paid
– Provided also that where such interest and penalty has already been paid, no refund of the same shall be available.
Payment of Tax under Section 128A :
Tax must be paid by crediting the amount in the electronic liability register against the debit entry created by the said order.
Form to file :
Form SPL-01 : against the demand issued in notice
Form SPL-02 : against the demand issued in order
Section 128A is not applicable on –
- Demands for erroneous refunds
- Interest, Penalty on late filing of returns
- Late filing fees
5) Procedure and Forms Used –
Form SPL-01 / 02 : Filed by Tax payer
Form SPL-03 : Query raised by the officer
Form SPL-04 : Reply of query by tax payer
Form SPL-05 : Reply Accepted by GSTO
Form SPL-07 : Reply Rejected by GSTO
- Revive your original File Appeal in SPL-06 against
- Appeal of Demand SPL-07 issued for reply Rejected
FAQ’s –
Ø Multiple Notices / orders issued – Separate Application of SPL-01/02 will be filed for all notices/orders
Ø SPL-06 – Only on facts related to SPL-01/02 and not on merits of the case.
Author Bio
WHETHER AN APPEAL filed for revocation of cancellation of GSTR Number against cancellation of registration can take benefit of new provision??