In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act,

## Policy Analysis Report: Central Tax Notification No. 28/2021 **1. Executive Summary:** This report analyzes Notification No. 28/2021 – Central Tax, issued by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs on June 30, 2021. This notification, an amendment to existing regulations, waives the penalty payable under Section 125 of the Central Goods and Services Tax (CGST) Act, 2017 for non-compliance with Notification No. 14/2020, specifically for the period between December 1, 2020, and September 30, 2021. The key finding is the temporary relief from penalties for registered persons failing to comply with certain requirements under the CGST Act. **2. Introduction:** The purpose of this report is to provide a detailed analysis of Notification No. 28/2021 – Central Tax, based solely on the content of the provided policy text. This analysis aims to inform affected industry stakeholders about the changes introduced by this notification and their potential impact. **3. Policy Overview:** * This notification is an *amendment*. It supersedes Notification No. 89/2020-Central Tax, dated November 29, 2020 (except for actions already taken or omitted prior to this supersession). * **Core Objective:** Based on the text, the primary objective of this notification is to waive penalties associated with non-compliance to Notification No. 14/2020-Central Tax under Section 125 of the CGST Act. **4. Background and Rationale:** This amendment likely addresses the challenges faced by registered persons in complying with the provisions of Notification No. 14/2020-Central Tax within the specified period (December 1, 2020, to September 30, 2021). Without additional context, it's impossible to ascertain the exact reason for the challenges but, based on this notification text, the government is providing temporary relief, and thus, it is plausible, there were issues associated with compliance during that time frame. This waiver likely aims to mitigate the financial burden on businesses struggling to meet the requirements of the earlier notification. **5. Key Provisions / Changes:** This notification introduces the following key change: * **Specific Part of Original Policy Changed:** It effectively suspends/waives the penalty provision under Section 125 of the CGST Act specifically concerning failures to comply with Notification No. 14/2020 Central Tax. * **New Rule/Provision:** Registered persons are *not* liable for penalties under Section 125 of the CGST Act for non-compliance with Notification No. 14/2020 Central Tax within the period from December 1, 2020, to September 30, 2021. * **Effect of Change:** This provision provides temporary relief from financial penalties for registered persons who did not fully comply with Notification No. 14/2020 during the specified timeframe. The original obligations of Notification 14/2020, remain. Only the *penalty* for non-compliance has been waived for a certain window. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are **registered persons** under the CGST Act, 2017 who were required to comply with the provisions outlined in Notification No. 14/2020-Central Tax. This includes any business or individual registered under GST who faced challenges meeting the requirements of Notification 14/2020 within the specified timeframe. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, Department of Revenue, is the responsible agency. * **Timeline:** The relief from penalty is applicable only for the period between December 1, 2020, and September 30, 2021. * **Procedure:** No specific procedure for claiming the waiver is outlined in the text, suggesting it is an automatic waiver for the specified period if non-compliance with Notification 14/2020 occured within that window. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this change is to reduce the financial burden on registered persons who may have faced difficulties complying with Notification No. 14/2020 during the specified period. This could lead to: * Reduced litigation related to penalties under Section 125. * Improved compliance in the future as businesses are given some leeway to adjust to GST regulations. * Reduced financial stress for businesses already affected by the pandemic or other economic factors. **9. Conclusion:** Notification No. 28/2021 provides a temporary waiver of penalties under Section 125 of the CGST Act for non-compliance with Notification No. 14/2020 between December 1, 2020, and September 30, 2021. This amendment offers relief to registered persons who may have struggled to meet the requirements of the earlier notification during that period. The notification demonstrates the government’s responsiveness to the needs of businesses and its willingness to provide temporary relief in challenging circumstances.

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