The Central Board of Indirect Taxes and Customs (CBIC) has notified that the Central Goods and Services Tax (Second Amendment) Rules, 2025 to further amend the Central Goods and Services Tax (CGST) Rules, 2017.
1. Changes to Rule 164 (Sub-rule 4)
The amendment clarifieD that payments made towards tax, interest, and penalties before the commencement of these rules will not be eligible for a refund.
If a demand notice under Section 128A(1) of the CGST Act includes tax dues for both the period covered under the said sub-section and another period, then the tax discharged earlier cannot be refunded.
2. Amendments in Rule 164 (Sub-rule 7)
A new proviso has been added allowing taxpayers to limit their appeal to only a part of the demand notice.
If a demand notice under Section 128A(1) includes tax dues for multiple periods, taxpayers can inform the appellate authority or Appellate Tribunal that they will not pursue an appeal for the period covered in Section 128A(1).
The appellate authority, upon receiving such a request, will issue an order for the tax liability related to the remaining period as deemed fit.
3. Clarity on Appeal Withdrawal
A specific explanation clarifies that appeals shall be considered withdrawn for demands related to the period from July 1, 2017, to March 31, 2020, under sub-clause (3) of Section 128A.
Notification Details
Notification No. 11/2025–Central Tax
Date: 27th March, 2025.
Read More: GST Amnesty Scheme: CBIC Issues Clarification On Availment Of Section 128A Benefit
