Navigating The Conditional Waiver Under Section 128A Of CGST Act, 2017
- IJLLR Journal
- Jul 4
- 1 min read
Shrinu Patro, B.B.A. LL.B., KIIT School of Law, Bhubaneshwar, India
Shubham Kumar, B.B.A. LL.B., KIIT School of Law, Bhubaneshwar, India
ABSTRACT
After introducing the Goods and Services Tax (GST) in July 2017, many older indirect taxes were replaced, although taxpayers had to deal with issues such as technology problems on the GST website, delayed return submissions and ITC issues. With Section 128A added to the CGST Act, people could be given waivers of interest and penalties if they paid their taxes in time for specified periods. Then again, one cannot use this waiver when there is a deliberate lie, cover-up or when the facts are hidden. Section 73 involves claims related to not paying or underpaying taxies and Section 128A only concerns these claims. If taxpayer makes a false statement to evade taxes, Section 74 comes into play and the waiver is prevented. It has contributed to the reduction of extra litigation by giving people a chance to settle their dues without facing any interest or penalties, if they first give up their appeals. It additionally helps small and medium companies voluntarily comply, since they may have had trouble with GST in the beginning. There are still problems such as the variations in tax regulations between states, how many hearings are required and the subjective powers of internal revenue officials to choose which taxpayers are given waivers. Having more specific rules can help deal with unclear points involving partial payments, appeal withdrawals and rectification orders. Many believe Section 128A attempts to help taxpayers paying fines and reduce court cases, although it needs adjustments to do this properly.
Keywords: waiver, penalty, Taxpayers, litigation, GST
