CBIC Indirect Tax Notifications, October 2024: Section 128A Relief, GSTR-7 Waiver, RCM on Metal Scrap, and CGST Rule Amendments
The Central Board of Indirect Taxes and Customs (CBIC) issued a series of notifications on 8th and 9th October 2024, introducing relief measures, procedural clarifications, and amendments to the CGST Rules 2017. These notifications collectively address some of the most significant compliance areas under India’s GST and indirect tax compliance framework, including a time-bound waiver scheme under Section 128A, a rectification window for ITC-related orders, late fee relief for GSTR-7 filers, a new RCM obligation on metal scrap, and key amendments to CGST rules governing invoice issuance, return filing, and pre-deposit limits for appeals. Each notification is summarized below.
Section 128A GST Payment Deadline Extension: Waiver of Interest and Penalty
Notification No. 21/2024-Central Tax
This notification extended the due dates for payment of GST to avail the waiver of interest and penalty on demand notices issued under Section 73 of the CGST Act for financial years 2017-18, 2018-19, and 2019-20. The key payment deadlines were as follows:
- For registered persons who received notices, statements, or orders referred to in clauses (a), (b), or (c) of Section 128A(1) of the CGST Act: payment due by 31st March 2025.
- For registered persons who received a notice under Section 74 in respect of the period covered under Section 128A(1): payment due within 6 months from the date of redetermination of the order.
- This notification came into effect from 1st November 2024.
Section 128A represents a significant relief measure for businesses with open GST demands for the early compliance years. Businesses that have not yet assessed their eligibility or filed the necessary applications under the waiver scheme should seek structured GST advisory and compliance guidance to understand available options.
Special Procedure for Rectification of CGST Orders Under Section 16(4), 73, 74, 107, and 108
Notification No. 22/2024-Central Tax
This notification introduced a streamlined electronic procedure for rectification of certain specified orders — specifically those issued under Sections 73, 74, 107, or 108 of the CGST Act where input tax credit was initially disallowed under Section 16(4) but has since become available under Section 16(5) or Section 16(6) of the CGST Act.
- A taxpayer may file a rectification application electronically on the common portal within six months from the date of issue of this notification.
- The procedure applies only to registered persons against whom an order has been issued confirming a demand for wrongful ITC availment under Section 16(4) and who have not filed an appeal against the original order.
- Upon receipt of the rectification application, the proper officer must upload a summary of the rectified order electronically within three months in FORM GST DRC-08 (for orders under Section 73 or 74) or FORM GST APL-04 (for orders under Section 107 or 108).
GSTR-7 Late Fee Waiver for TDS Filers: Section 51 Relief
Notification No. 23/2024-Central Tax
CBIC has provided relief to taxpayers required to file FORM GSTR-7 containing details of TDS deducted under Section 51 of the CGST Act, 2017. The key terms of this waiver are:
- Waiver of late fees for delayed filing of GSTR-7 from June 2021 onwards.
- Late fees are capped at INR 25 per day for the period of delay, subject to a maximum of INR 1,000.
- Full waiver of late fees is available for months where the tax deducted is Nil.
- This notification comes into force from 1st November 2024.
RCM on Metal Scrap Supply from Unregistered Persons: New TDS Obligation
Notification No. 24/2024-Central Tax
CBIC has amended the original Notification No. 5/2017-Central Tax dated 19 June 2017 to extend the Reverse Charge Mechanism (RCM) to the supply of metal scrap from unregistered to registered persons. Additionally, a TDS obligation of 2% has been introduced on the supply of metal scrap in B2B transactions. This amendment is effective from 10 October 2024.
Metal scrap dealers, registered buyers, and businesses involved in scrap procurement chains should review their invoicing, return filing, and TDS compliance obligations in light of this change.
Amendments to CGST Rules 2017: Rules 47A, 66, and 164
Notification No. 20/2024-Central Tax dated 8 October 2024
Rule 47A: 30-Day Invoice Issuance Timeline for RCM Suppliers
A new Rule 47A has been inserted specifying the time limit for issuance of tax invoices by registered persons liable to pay tax under the Reverse Charge Mechanism under Section 31(3)(f) of the CGST Act. Such persons must issue the invoice within 30 days from the date of receipt of the supply of goods or services.
Rule 66: GSTR-7 Filing Deadline Clarified
Rule 66(1) has been amended to clarify that FORM GSTR-7 must be submitted on or before the 10th day of the succeeding month, with effect from 1st November 2024.
Rule 164: Closure of Proceedings Under Section 128A
A new Rule 164 has been inserted, providing the detailed procedure and conditions for closure of proceedings under Section 128A in relation to demands issued under Section 73 of the CGST Act:
- Persons eligible for waiver under Section 128A(1)(a) may file FORM GST SPL-01 electronically, with details of notice and payment evidence via FORM GST DRC-03. For orders under Section 128A(1)(b) or (c), the application must be filed in FORM GST SPL-02.
- Applications must be accompanied by evidence of withdrawal of any appeal or writ petition. Where the withdrawal order has not yet been issued, the application for withdrawal must be submitted and the order uploaded within one month of issuance.
- The time limit for filing applications is three months or six months, as applicable.
- If the proper officer believes the applicant is ineligible, a notice must be issued in FORM GST SPL-03 within three months of receipt of the application. The applicant may respond via FORM GST SPL-04 within one month.
- The proper officer will issue an acceptance order in FORM GST SPL-05 or a rejection order in FORM GST SPL-07. Non-issuance of an order within the prescribed time limit will result in deemed approval of the application.
- Where the waiver application is rejected and the rejection is upheld, the applicant must file an undertaking in FORM GST SPL-08 confirming that no appeal has been or will be filed against the order within three months from its date of issue.
- Amendment to FORM GSTR-9: In Table 8-Part A, ITC will now be auto-populated based on GSTR-2B data.
Revised Pre-Deposit Limits for GST Appeals
Amendments have been made to the pre-deposit limits for FORM GST APL-01 (first appeal) and FORM GST APL-05 (appeal before the Appellate Tribunal), effective from 1st November 2024. The revised pre-deposit is set at 10% of the disputed tax or cess, subject to the following caps:
- Not exceeding ₹20 crore each in respect of CGST, SGST, or cess
- Not exceeding ₹40 crore in respect of IGST
This revision reduces the pre-deposit burden for taxpayers with large disputed amounts and makes it more feasible to pursue appeals at the tribunal level. Businesses that are evaluating whether to file or continue appeals in light of these revised limits should assess their position with the support of GST appeal and pre-deposit support specialists.
Additional Resources
For further reading on related GST compliance and indirect tax notification topics, the following MBG insights may be useful: