Procedure to File FORM
GST SPL-01 and FORM GST SPL-02 for closure of proceedings under section 128A in
respect of demands issued under section 73
By Yogesh Verma (CS/LLB) / 2 min read / GST Article
Introduction: In
light of the recent amendments to the GST Rules, the introduction of Rule 164 outlines
the procedure and conditions for closure of proceedings under section 128A in
respect of demands issued under section 73. The key elements of the rule
involve the use of two specific forms—FORM GST SPL-01 and FORM GST SPL-02—for
waiver applications related to tax demands, interest, and penalties. This
article provides a detailed guide on the step-by-step process for filing these
forms, ensuring compliance with the new rules effective from November 1, 2024.
1. Overview of Rule 164
and Section 128A
Rule 164 deals with the
procedure for closing proceedings when a taxpayer seeks a waiver of interest,
penalties, or both, arising from demands under section 73 of the GST Act.
Section 128A provides the framework for such waivers.
The waivers can be sought
in cases where a taxpayer has been issued a:
- Notice or statement
under clause (a) of sub-section (1) of section 128A (FORM GST SPL-01); or
- Order
under clauses (b) and (c) of sub-section (1) of section 128A (FORM GST
SPL-02).
The rule outlines the
conditions, timelines, and forms required for such applications. The payment of
tax liabilities and interest (if applicable) plays a critical role in the
waiver process.
2. Filing FORM GST SPL-01
2.1 Purpose of FORM GST
SPL-01
FORM GST SPL-01 is used
to file an application for the waiver of interest, penalty, or both in cases
where a notice or statement has been issued under clause (a) of sub-section (1)
of section 128A. This typically relates to situations where a demand for tax
has been raised but the taxpayer is eligible for a waiver based on certain
conditions.
2.2 Key Conditions for
Filing FORM GST SPL-01
- The taxpayer should be eligible for a
waiver as per section 128A.
- Payment of the full tax demanded in
the notice or statement must be made in FORM GST DRC-03 before
filing the waiver application.
- Any appeal or writ petition filed
before the appellate authority, tribunal, or court in relation to the
demand must be withdrawn.
2.3 Step-by-Step Filing
Process for FORM GST SPL-01
1. Access
the GST Portal: Log in to the GST common portal
using valid credentials.
2. Navigate
to FORM GST SPL-01: Under the “Services” section, navigate to
the Application for Waiver under section 128A.
3. Provide
Required Details:
o Notice
or Statement Details: Provide the reference number and date of
the notice or statement issued under section 128A.
o Tax
Payments Made: Include the details of payments made
toward the tax demanded using FORM GST DRC-03.
4. Upload
Supporting Documents:
o Upload
proof of tax payments (FORM GST DRC-03).
o Attach
any relevant documents, including evidence of the withdrawal of appeals or writ
petitions, if applicable.
5. Submit
the Application:
o Review
the details entered.
o Click
Submit to file the application electronically.
6. Acknowledgment:
o Once
submitted, an acknowledgment will be generated on the common portal.
o The
application is assigned to a proper officer for review.
2.4 After Submission
- The proper officer will review the
application. If the application is found eligible, an order in FORM GST
SPL-05 will be issued on the portal, concluding the proceedings.
- If ineligible, the officer will issue
a notice in FORM GST SPL-03, giving the taxpayer an opportunity to
respond using FORM GST SPL-04 within one month.
3. Filing FORM GST SPL-02
3.1 Purpose of FORM GST
SPL-02
FORM GST SPL-02 is
applicable when a taxpayer seeks a waiver of interest, penalty, or both in
cases where an order has been issued under clause (b) or clause (c) of
sub-section (1) of section 128A. The process is used for orders that demand tax
payment due to erroneous refunds or other similar situations.
3.2 Key Conditions for
Filing FORM GST SPL-02
- The taxpayer should have fully paid
the tax demanded as per the order.
- If payment is made through FORM
GST DRC-03, the amount should be credited to the Electronic
Liability Register before filing the waiver application.
- Any appeal or writ petition against
the demand should be withdrawn before submitting the application.
3.3 Step-by-Step Filing
Process for FORM GST SPL-02
1. Access
the GST Portal: Log in to the GST portal using valid
credentials.
2. Navigate
to FORM GST SPL-02: Under the “Services” section, find the Application
for Waiver under section 128A for orders.
3. Provide
Required Details:
o Order
Details: Enter the reference number and date of the order
issued under section 128A.
o Tax
Payments Made: Include details of tax payments made
(through FORM GST DRC-03).
4. Upload
Supporting Documents:
o Proof
of tax payments (FORM GST DRC-03).
o Upload
documents that establish the withdrawal of appeals or writ petitions, if
applicable.
5. Submit
the Application:
o Double-check
the details.
o Submit
the application electronically on the portal.
6. Acknowledgment:
o Upon
submission, an acknowledgment is generated, and the proper officer is notified
for review.
3.4 After Submission
- The proper officer will review the
application. If the officer is satisfied, an order in FORM GST SPL-05
will be issued.
- If the application is deemed
ineligible, a notice in FORM GST SPL-03 will be issued, giving the
taxpayer a chance to reply through FORM GST SPL-04.
4. General Guidelines for
Filing GST SPL Forms
4.1 Timelines for Filing
Applications
- Applications under FORM GST SPL-01
or SPL-02 must be filed within three months of the date
notified under section 128A.
- In specific cases (e.g., erroneous
refunds), the time limit is six months from the date of the order.
4.2 Payment of Tax
Liabilities
- Full payment of tax demands is a
prerequisite for filing both SPL-01 and SPL-02. Payments should be made
through FORM GST DRC-03 and credited to the Electronic Liability
Register.
4.3 Withdrawal of Appeals
- Any appeal or writ petition related
to the tax demand must be withdrawn. The applicant must submit proof of
withdrawal or the order of withdrawal from the appellate authority or
court.
4.4 Response to Notices
(FORM GST SPL-03)
- If the proper officer finds the
application ineligible, a notice in FORM GST SPL-03 will be issued,
and the applicant has one month to reply using FORM GST SPL-04.
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Key
Provisions
|
Details
|
|
Rule 164
Introduction
|
Procedure
and conditions for closure of proceedings under section 128A for demands
under section 73.
|
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Eligibility
for Waiver
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Eligible
person can file an application in FORM GST SPL-01 or SPL-02 for waiver of
interest, penalty, or both.
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Form for
Submission
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FORM GST
SPL-01 for notices/statements under clause (a) of section 128A and FORM GST
SPL-02 for orders under clauses (b) and (c) of section 128A.
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Payment
Requirements
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Full
payment of the tax demanded must be made before filing the application.
Payment through FORM GST DRC-03 is allowed.
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Application
Timeline
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Applications
to be filed within 3 months of the notification date (or 6 months in specific
cases).
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Withdrawal
of Appeal
|
Application
must include proof of withdrawal of any appeal or writ petition related to
the tax demand.
|
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Officer's
Review
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Proper
officer may issue FORM GST SPL-03 if the application is found ineligible, and
the applicant can respond in FORM GST SPL-04.
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Order
Issuance
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If
accepted, the officer issues FORM GST SPL-05, concluding the proceedings. If rejected,
FORM GST SPL-07 is issued.
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Time
Frame for Decision
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Orders
must be issued within 3-4 months of the application/reply, or the application
will be deemed approved.
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Additional
Payments
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Any
failure to pay additional tax liability within the stipulated time results in
the waiver becoming void.
|
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Restoration
of Original Appeal
|
If no
appeal is filed against FORM GST SPL-07, the original appeal will be
restored. If an appeal is filed and the rejection is overturned, FORM GST
SPL-06 will be issued, concluding the proceedings under section 128A.
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5. Conclusion
The introduction of FORM
GST SPL-01 and FORM GST SPL-02 under Rule 164 offers taxpayers a formalized
mechanism to apply for waivers of interest, penalties, or both, arising from
tax demands under section 73. Understanding the procedural requirements and
ensuring the timely submission of applications along with appropriate tax
payments and withdrawal of appeals are crucial for successful closure of
proceedings under section 128A.
Taxpayers must ensure
compliance with the filing procedures, payment obligations, and deadlines to
benefit from these waivers and avoid potential rejections or extended
proceedings. With proper documentation and timely responses to notices, the
process outlined in Rule 164 can facilitate the resolution of GST disputes
efficiently.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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