Section 128A waiver: the eligibility and savings working sheet
Five lines. If the answer is positive and the issue does not recur, pay.
For each demand, record the year, the section invoked, the tax, the interest and the penalty, and the exposure for later years on the same issue. The waiver is available for demands under Section 73 for 2017-18, 2018-19 and 2019-20, on payment of the full tax within the notified window, and it excludes demands relating to erroneous refunds.
The working sheet
Year, and whether it is one of 2017-18, 2018-19 or 2019-20.
The section invoked. Only Section 73 demands are covered; a Section 74 demand is not, which is itself a reason to contest the invocation.
The tax, computed excluding interest and penalty, and excluding any erroneous refund element which must be bifurcated.
The interest and penalty that would be waived — this is the benefit.
The exposure for later years on the same issue, because paying does not settle those and the payment will be cited for them.
The stage: whether a notice, an order or an appeal is pending, which determines whether SPL-01 or SPL-02 applies and whether an appeal must be withdrawn.
Reading the result
Where the interest and penalty exceed the tax and the issue does not recur, the arithmetic favours payment.
Where the issue recurs annually and the position is strong, the precedent value of an appellate order may exceed the waiver benefit.
Where a Section 74 demand has been raised on facts that support Section 73, contesting the invocation may bring the year within the waiver, which is an argument worth making expressly.
In every case, record in the application and in a covering letter that no position is admitted for any other period.
What to do on Monday
Complete the sheet for every open demand for 2017-18 to 2019-20.
Where Section 74 has been invoked on Section 73 facts, contest the invocation with the waiver consequence in view.
Bifurcate erroneous refund elements before applying.
Record in writing that no position is admitted for other periods.
This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.
Write to the GST practiceQuestions we are asked on this
Are Section 74 demands covered?
No. The waiver covers demands under Section 73 for the specified years. Contesting the Section 74 invocation can therefore have a waiver consequence.
Is the whole tax payable?
Yes, the full tax for the demand for which the waiver is sought.
Are erroneous refund demands covered?
No. Bifurcate them out of a mixed demand.
Does paying settle later years?
No, and the payment will be cited for them unless the covering letter says otherwise.
In this cluster
- Section 128A: the waiver that is arithmetic, not amnesty
- SPL-01 and SPL-02: filing the Section 128A waiver application correctly
- Withdrawing an appeal to access the waiver: the sequencing risk
- Amnesty for revocation of cancelled registrations
- Late fee waivers for GSTR-9 and GSTR-10
- Should you settle or litigate? A decision framework
- Compounding of offences under Section 138
GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.