CBIC Amends Rule 164 of CGST Rules: Clarifications on Tax Demands, Appeals, and Refund [Read Notification]
Previously, Rule 164 did not expressly provide such flexibility, leaving ambiguity on the treatment of appeals and whether withdrawal was required for the entire period of assessment
![CBIC Amends Rule 164 of CGST Rules: Clarifications on Tax Demands, Appeals, and Refund [Read Notification]](https://www.taxscan.in/wp-content/uploads/2025/03/CBIC-Rule-164-of-CGST-Rules-CGST-Rules-CBIC-Rule-164-amendment-TAXSCAN.jpg "CBIC Amends Rule 164 of CGST Rules: Clarifications on Tax Demands, Appeals, and Refund [Read Notification]")
The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 11/2025 – Central Tax on March 22, 2025, introducing amendments to Rule 164 of the Central Goods and Services Tax (CGST) Rules, 2017. With a specific focus on Rule 164, the notification specifically brings changes to the provisions regarding tax demands, appeals, and refund claims and provides clarity on...
The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 11/2025 – Central Tax on March 22, 2025, introducing amendments to Rule 164 of the Central Goods and Services Tax (CGST) Rules, 2017.
With a specific focus on Rule 164, the notification specifically brings changes to the provisions regarding tax demands, appeals, and refund claims and provides clarity on the treatment of appeals and tax liabilities under Section 128A of the CGST Act, 2017.
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The key amendment to Rule 164 addresses cases where a tax demand under Section 128A(1) covers both a specified period from July 1, 2017 to March 31, 2020.
The revised rule explicitly states that taxpayers will not be eligible for a refund of tax, interest, or penalty already paid for any period covered under such demands. Additionally, the modification introduces a crucial flexibility by allowing taxpayers to withdraw their appeal only for the specified period while continuing to contest demands for subsequent periods.
Another significant change introduced by the amendment is the provision allowing partial withdrawal of appeals. Previously, Rule 164 did not specify whether taxpayers who sought to settle their tax liability for the specified period were required to withdraw their appeal for the entire assessment period, even if they wished to contest tax demands for subsequent periods.
The amendment now expressly states that if a taxpayer wishes to accept liability for the specified period but still challenge tax demands for other periods, they are not required to withdraw their appeal entirely. Instead, they can inform the appellate authority that their withdrawal applies only to the specified period, allowing them to continue contesting demands for later periods.
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The amendment further mandates that once an appeal is withdrawn for the specified period, the appellate authority or tribunal must take note of this withdrawal and issue an appropriate order acknowledging it, ensuring that the withdrawal is limited only to the specified period and has no bearing on the taxpayer’s ability to pursue legal remedies for tax demands related to other periods.
The amendment is poised to increase taxpayer confidence by ensuring clarity on the vocabulary of the provision.
The notification has been undersigned by Raushan Kumar, Under Secretary to the Government of India.
To Read the full text of theNotification CLICK HERE
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