Notes on Rule 164 of the CGST Rules, 2017

The amendment introduced to Rule 164 of the CGST Rules, 2017 provide clarity on payment requirements and appeal procedures for taxpayers seeking benefits of Section 128A of the CGST Act, 2017.

The amendment to Rule 164(4) states that taxpayers are required to make payments only for the specified period applicable for Section 128A of the Act, i.e., July 2017 - March 2018, FY 2018-19, and 2019-20, for demands raised under Section 73.

Additionally, an explanation has been inserted stating that no refund shall be available for tax, interest, and penalty already discharged for the entire period, prior to the commencement of these rules, in cases where a notice or statement or order mentioned in sub-section (1) of section 128A, includes a demand of tax, partially for the period mentioned in the said sub-section and partially for a period other than mentioned in the said sub-section. Further, the amendment to Rule 164(7), the proviso has been inserted, which clearly state that where the notice or statement or order mentioned in sub-section(1) of section 128A of the CGST Act includes demand of tax, partially for the period mentioned in the said sub-section and partially for the period other than that mentioned in the said sub-section, the applicant instead of withdrawing the appeal, shall intimate the appellate authority or Appellate Tribunal that he does not wish to pursue the appeal for the period mentioned in the said sub-section and the relevant authority shall, after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as he thinks just and proper. Furthermore, as per the explanation, and same would be considered as withdrawal of appeal for the purpose stated under sub-clause (3) of Section 128A, for the period of 01.07.2017 to 31.03.2020.

[Comment Added on: 01.05.2025]