Understanding CGST Rule 164: Scope, Objectives, and Recent Revisions
CGST Rule 164 provides a framework for taxpayers to request waivers of interest and penalties on tax demands, specifically for the period between July 2017 and March 2020. This rule complements Section 128A of the CGST Act, offering a structured process for resolving long-pending tax cases. It involves specific forms and procedures for application, review, and resolution by tax authorities. Recent amendments further clarify aspects like partial appeal withdrawals and the treatment of already paid amounts.
Rule 164 of the CGST Rules, 2017, outlines a mechanism for taxpayers to seek waivers of interest or penalties, or both, on tax demands issued under Section 73. This applies to the period between July 1, 2017, and March 31, 2020, referred to as the "relief period." Section 73 permits GST officers to issue show cause notices when tax non-payment occurs for reasons other than fraudulent intent. Rule 164 supports Section 128A of the CGST Act, 2017, by establishing the procedures and prerequisites for concluding proceedings under that section. This document will explore Rule 164, its scope, and recent amendments. 제주출장마사지
Understanding CGST Rule 164
Taxpayers seeking to request a waiver of interest, penalties, or both must submit Form GST-SPL-01 or GST-SPL-02. This submission is required after the demanded tax has been paid either through Form DRC-03 or by depositing the amount into the electronic liability register.
| Form GST-SPL-01 | Form GST-SPL-02 |
|---|---|
| This form is necessary when a tax officer issues a notice under Section 73, but no subsequent order has been issued under that section. | This form is required when a tax officer has issued an order under Section 73, but no order has been issued by an appellate or revisional authority. |
| OR | OR |
| An order has been passed by an appellate or revisional authority, but no order has been issued by the appellate tribunal. |
Once the relevant authority is satisfied, the taxpayer qualifies for a complete waiver of interest and penalties calculated under the CGST Act, 2017. Furthermore, the proceedings related to these matters will be considered finalized and resolved.
Scope of CGST Rule 164
Rule 164 is applicable to cases involving outstanding tax demands and appeals that relate to the period from July 1, 2017, to March 31, 2020.
Objective of Rule 164
Rule 164 aims to simplify and resolve long-standing tax cases by providing a structured settlement mechanism for both taxpayers and GST authorities. It also facilitates taxpayers in partially withdrawing their appeals, thereby simplifying the dispute resolution procedure.
Procedures and Forms Under Rule 164
Rule 164 outlines a detailed process involving various forms for both taxpayers and tax officers. The procedural flow is as follows:
- Taxpayers seeking a waiver under Section 128A must file the applicable Form GST-SPL-01 or GST-SPL-02 for the specified relief period. This form must be accompanied by evidence of appeal or writ petition withdrawal and payment of the relevant tax liability.
- If the tax officer determines the taxpayer is eligible for a waiver, an order accepting the application (Form GST-SPL-05) will be issued, concluding the proceedings within three months of the application date.
- Should the tax officer reject the application, reasons must be provided to the taxpayer via Form GST-SPL-03 within three months of the application date.
- Upon receiving Form GST-SPL-03, the taxpayer must respond to the tax officer using Form GST-SPL-04 within one month.
- If the tax officer is then satisfied with the taxpayer's eligibility, an acceptance order (Form GST-SPL-05) will be issued, concluding proceedings within three months of receiving Form GST-SPL-04.
- If the tax officer remains unsatisfied with the response in Form GST-SPL-04, the application will be rejected via an order in Form GST-SPL-07 within three months of receiving Form GST-SPL-04.
- If the tax officer receives no reply from the taxpayer, an order in Form GST-SPL-07 will be issued within four months from the date of Form GST-SPL-03.
- Should the tax officer fail to issue any order within the stipulated timeframes, the application (Form GST-SPL-01/02) is considered automatically accepted, making the taxpayer eligible for the waiver.
- Following an order in Form GST-SPL-07, the taxpayer has three months to file an appeal with the appellate authority. If no appeal is filed, the original appeal (prior to filing Form GST-SPL-01/02) will be reinstated.
- If the appellate authority finds the taxpayer eligible for a waiver, it will issue an order (Form GST-SPL-06) acknowledging acceptance and concluding the proceedings.
- If the appellate authority confirms the tax officer's rejection of the waiver, the original appeal (before filing Form GST-SPL-01/02) will be restored, provided the taxpayer submits an undertaking in Form GST-SPL-08 within three months, confirming no further appeal against the order.
If, after the conclusion of proceedings, appellate authorities require the taxpayer to pay additional tax liability under Section 128A, and this payment is not made within three months of the order date, the waiver granted under Section 128A will become invalid.
The term "tax liability" for Rule 164 refers to the tax amount specified in the demand issued under Section 73, minus any Input Tax Credit (ITC) adjustments made in accordance with Sections 16(5) and (6).
Recent Revisions to Rule 164
Notification no. 11/2025 dt. 27th March 2025 introduced significant modifications to Rule 164:
- No refunds will be issued for interest or penalties that taxpayers have already paid.
- Taxpayers may submit their waiver application under Section 128A after paying the tax for the relief period, even if the original notice or statement included demands for multiple periods.
- Taxpayers are now permitted to partially withdraw appeals related to the Section 128A relief period without affecting appeals for subsequent periods not covered by Section 128A, provided they pay the tax amount specific to the relief period.
- Taxpayers can inform the Appellate Authority, Tribunal, or Court of their intent to withdraw an appeal pertaining to the relief period, rather than pursuing it. These authorities must consider this request and issue distinct orders for periods falling outside the relief period.