[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)

CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

 NOTIFICATION No. 11/2025–Central Tax   New Delhi, the 27th March, 2025.

 G.S.R... (E).–In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:—

1.     (1) These rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2025.

 (2) They shall come into force on the date of their publication in the Official Gazette.

 2.      In the Central Goods and Services Tax Rules, 2017,–

 (a)        in rule 164, –

(i)                 in sub-rule (4), after the words “after payment of the full amount of tax”, the words “related to period mentioned in the said sub-section and” shall be inserted.

 (ii)               after sub-rule (4), the following Explanation shall be inserted, namely: -

 “Explanation, - No refund shall be available for any tax, interest, and penalty, which has already been discharged for the entire period, prior to the commencement of the Central Goods and Services Tax (Second Amendment) Rules, 2025, 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.”.

(b)  in rule 164, in sub-rule 7, after the first proviso, the following proviso shall be inserted, namely: - “Provided further that where the notice or statement or order mentioned in sub-section(1) of

section 128A of the 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.

 

Explanation,– For the removal of doubt, it is clarified that the appeal application shall be deemed to have been withdrawn to the extent of the said intimation for the period from the 1st July, 2017 to the 31st March, 2020 or part thereof, for the purpose of sub-clause (3) of section 128A.”

 

[No. CBIC-20016/12/2025-GST]

  (Raushan Kumar) Under Secretary to the Government of India.

 

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub- section(i), vide number G.S.R. 610(E), dated, the 19th June 2017 and was last amended, vide number G.S.R. 72(E), dated the 23rd January, 2025.

https://gstcouncil.gov.in/sites/default/files/2025-04/gst-ct-11-2025.pdf

PRECAUTIONS FOR PROFESSIONALS (PRACTICAL POINTS)

1.      Verify the Demand Period Carefully
Always segregate demand raised in notices/orders into:
• Period covered under section 128A (1 July 2017 – 31 March 2020), and
• Period outside this range.
Incorrect segmentation may lead to unintended withdrawal of the entire appeal.

2.      No Refund for Pre-Amendment Discharged Liability
Refund is expressly barred for tax/interest/penalty paid for the entire period before commencement of these Rules if the demand covers mixed periods. Avoid filing refund applications in such scenarios.

3.      Issue Intimation Instead of Withdrawing Entire Appeal
For mixed-period demands, professionals must intimate the authority about non-pursuit of appeal only for the eligible period, not withdraw the full appeal. Ensure the intimation is properly drafted and acknowledged.

4.      Document Every Segregation and Intimation
Maintain clear working papers showing computation of period-wise tax demand to avoid future disputes on deemed withdrawal.

5.      Advise Clients on Irrevocable Effect
Once the appeal is deemed withdrawn for 2017–2020 period, it cannot be revived. Ensure clients understand implications before issuing intimation.

6.      Check Ongoing/Filed Appeals Immediately
Perform a review of all pending matters under section 128A to identify cases affected by this amendment.

7.      Update Litigation Strategy
Where significant demand pertains to the “other period”, prepare strong representation since the appeal will survive only for that part.

8.      Avoid Refund-Expectation Miscommunication
Clearly communicate that partial or full refund may not be available if liability for entire period is discharged before the amendment.