REGARDING GST AMNESTY SCHEME
This query is : Resolved
09 April 2025
My Query is that if a person has been issued demand order u/s 73 denying Input Credit as per section 16(4) and such person failed to apply for Application of Rectification of Order by 08-04-2025. Then Whether he may apply in Amnesty Scheme u/s 128(A)? The demand u/s 73 pertains entirely on denial of input Credit.
10 April 2025
The taxpayer can apply under the GST Amnesty Scheme (Section 128A) even if they missed the rectification deadline (April 8, 2025) for ITC denied under Section 16(4), provided the demand falls within the scheme’s scope.
Demand Period: The tax demand must pertain to FY 2017-18 to 2019-20 (July 1, 2017 – March 31, 2020).
Nature of Demand: The demand must be under Section 73 (non-fraud cases). Since the denial of ITC under Section 16(4) is covered under Section 73, it qualifies.
Payment Deadline: The taxpayer must pay the full tax dues (after adjusting for reinstated ITC under Section 16(5)/(6)) by March 31, 2025.
As you missed the March 31, 2025 payment deadline, you are ineligible for the waiver.
Demand Period: The tax demand must pertain to FY 2017-18 to 2019-20 (July 1, 2017 – March 31, 2020).
Nature of Demand: The demand must be under Section 73 (non-fraud cases). Since the denial of ITC under Section 16(4) is covered under Section 73, it qualifies.
Payment Deadline: The taxpayer must pay the full tax dues (after adjusting for reinstated ITC under Section 16(5)/(6)) by March 31, 2025.
As you missed the March 31, 2025 payment deadline, you are ineligible for the waiver.
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11 April 2025
Thank you very much Dhirajlal Sir for your response.
As you have mentioned that "The taxpayer must pay the full tax dues (after adjusting for reinstated ITC under Section 16(5)/(6)) by March 31, 2025." In my case there is no Outstanding demand after adjustment of ITC u/s 16(5). As the entire demand was created by denying ITC u/s 16(4). Hence no payment was done on or before 31-03-2025. Then, can we still apply for the relief under the Amnesty Scheme? As time time for application of rectification of order as lapsed.
As you have mentioned that "The taxpayer must pay the full tax dues (after adjusting for reinstated ITC under Section 16(5)/(6)) by March 31, 2025." In my case there is no Outstanding demand after adjustment of ITC u/s 16(5). As the entire demand was created by denying ITC u/s 16(4). Hence no payment was done on or before 31-03-2025. Then, can we still apply for the relief under the Amnesty Scheme? As time time for application of rectification of order as lapsed.
11 April 2025
If there was no demand as per the order, question of application would not have arose. The denial of ITC creates the demand. If system accepts your application, you may proceed. See if the demand gets nullified.
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11 April 2025
Let It me clarify situation in detail.
I have been issued order u/s 73 of 74,610/- along with Interest and penalty thereon by applying 16(4) on 08 August 2024. I was not able to apply for rectification of said order by 08 April 2025 as provided in Circular No. 237 GST. However, after going through Circular 238 GST point 15; I have applied in Amnesty Scheme in SPL-2 form. While filling in SPL-2 form Demand of Rs 74,610/- was reduced to Rs 0 when I filled the table 3B with Rs 74,610/- the {ITC denied as per Section 16(4) and subsequently eligible under Section 16(5)}. Hence Net payable Tax/demand amount as per form SPL-2 is 0. SPL-2 form was successfully filed at GST portal. However, now Department has issued me SCN stating “Notice/order is ineligible for Waiver Scheme”. On enquiring, the department replied that you were eligible for Apply Rectification of Order as per circular 237/31/2024-GST instead of Amnesty Scheme.
I have been issued order u/s 73 of 74,610/- along with Interest and penalty thereon by applying 16(4) on 08 August 2024. I was not able to apply for rectification of said order by 08 April 2025 as provided in Circular No. 237 GST. However, after going through Circular 238 GST point 15; I have applied in Amnesty Scheme in SPL-2 form. While filling in SPL-2 form Demand of Rs 74,610/- was reduced to Rs 0 when I filled the table 3B with Rs 74,610/- the {ITC denied as per Section 16(4) and subsequently eligible under Section 16(5)}. Hence Net payable Tax/demand amount as per form SPL-2 is 0. SPL-2 form was successfully filed at GST portal. However, now Department has issued me SCN stating “Notice/order is ineligible for Waiver Scheme”. On enquiring, the department replied that you were eligible for Apply Rectification of Order as per circular 237/31/2024-GST instead of Amnesty Scheme.
11 April 2025
Based on the current understanding of the status, the scheme doesn't seem to be the appropriate avenue to address the denial of ITC in your demand order. The amnesty scheme targets delays in the appellate process, not the merits of the original demand order itself. Your next steps might involve exploring other legal remedies available under the GST law, such as filing an appeal with condonation of delay within the prescribed time limit from the date of the demand order or potentially seeking a writ petition in the High Court under certain circumstances.
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11 April 2025
Thank you Very much Dhirajlal ji sir for your replies and for dedicating your valuable time to my query.
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11 April 2025
You are welcome.
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