Advisory on Appeal Withdrawal Under GST Waiver Scheme (Section 128A)

Introduction

The Goods and Services Tax Network (GSTN) has issued an important advisory for taxpayers intending to benefit from the GST Waiver Scheme under Section 128A. This scheme offers relief from interest and penalties on unpaid taxes. However, to be eligible, taxpayers must ensure that no appeals are pending against the relevant demand orders.

Appeal Withdrawal Process

1. Automatic Withdrawal: If a taxpayer files a withdrawal application (Form APL-01W) before the issuance of the final acknowledgment (APL-02) by the Appellate Authority, the system will automatically update the status of the appeal (APL-01) to “Appeal Withdrawn”.

2. Manual Approval: If the withdrawal application is filed after the issuance of APL-02, the withdrawal is subject to the Appellate Authority’s approval. Once approved, the status will be updated to “Appeal Withdrawn”.

Requirement for Waiver Application

To apply for the waiver under Section 128A, taxpayers must upload a screenshot of the appeal case folder showing the status as “Appeal Withdrawn”. This applies to both new waiver applications and updates to existing ones.

This blog is auto-generated for informational purposes only. It is recommended to consult with a tax professional or refer to official GSTN communications for personalized advice.

Goods and Services Tax

Government of India, States and Union Territories

Advisory on Appeal withdrawal with respect to Waiver scheme

May 14th, 2025

In the GST system, when Withdrawal application (APL 01W) for appeal is filed before issuance of final acknowledgment (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal application (APL 01). In such cases, the status of the appeal application will automatically change from “Appeal submitted” to “Appeal withdrawn”.

However, if withdrawal application is filed after issuance of final acknowledgment, then the withdrawal of such appeal is subjected to the approval of the Appellate authority. Once the Appellate authority approves the withdrawal application, the status of the Appeal application changes from “Appeal submitted” to “Appeal withdrawn”.

Waiver scheme under Section 128A mandates that any appeal against the requisite demand order should not remain pending with Appellate authority. In both the above-mentioned cases, the status of the Appeal application is changed to “Appeal Withdrawn” which essentially fulfilled the requirement.

While filing waiver application or in the already filed waiver application, taxpayers need to upload the screenshot of the appeal case folder showing status as “Appeal withdrawn”.

Thanks,
Team GSTN

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