Section 128 is the power behind the late fee waivers and amnesties issued since 2017.
Key points
- Under section 128 of the CGST Act, 2017 the Government, on the recommendations of the Council, may by notification waive in whole or part any penalty under section 122, 123 or 125, or late fee under section 47, for a class of taxpayers in specified mitigating circumstances.
The provisions
128Power to waive penalty or fee
Statutory text
The Government may, by notification, waive in part or full, any penalty referred to in section 122 or section 123 or section 125 or any late fee referred to in section 47 for such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council.
*Enforced w.e.f. 1st July, 2017 .
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the legal basis of GST late fee waivers?
- Section 128 of the CGST Act, which lets the Government waive late fees and certain penalties by notification.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The late fee reductions for GSTR-3B, GSTR-1 and GSTR-9 (Notifications 19/2021, 20/2021 and 7/2023-Central Tax) are made under this section; see section 47.