The Karnataka High Court ruled that the time limit for filing a waiver application under Section 128A is directory and not mandatory, meaning a delay cannot solely justify the rejection of such waivers for GST interest and penalty.
Karnataka High Court on GST Waivers
The Karnataka High Court has ruled that the timeline prescribed for filing a waiver application under Section 128A of the GST Act is directory rather than mandatory. Consequently, the court held that a mere delay in filing does not provide a sufficient ground to reject applications seeking waivers of interest and penalties under GST.
This ruling reinforces the notion that procedural timelines should not serve as barriers to relief, especially where taxpayers are genuinely seeking waivers due to extenuating circumstances. The court's decision implies a more lenient approach in evaluating waiver applications for those who may have experienced delays.
Legal practitioners should take note of this ruling when advising clients on waiver applications. There is now a stronger basis for arguing that significant factors aside from timing should be considered when determining the validity of GST waiver applications.
Citations
- Karnataka High Court (2026) Volume Reporter Page
