GST Amnesty Scheme was introduced by CBIC to help non-filers by offering a one-time waiver of late fees, encouraging voluntary return filing.
GST Amnesty Scheme is expected to offer significant relief to taxpayers those who are facing show cause notices (SCNs) adjudicating orders, and appeal orders for FY 2017-18, 2018-19, and 2019-20.
Official Notification
As per the notification released on 8th October 2024, the Ministry of Finance introduced a conditional waiver of interest and penalty scheme u/s 128A of the GST Act. The scheme is going to be effective from 1st November 2024.
Main Objectives
The main aim is to waive interest and penalties under arising between July 1, 2017, and March 31, 2020.
Who is Eligible for this GST Waiver?
The waiver is available for taxpayers who:
- Received non-fraudulent GST demand notices under Section 73.
- Made filing mistakes during period FY 2017-18 to FY 2019-20.
Application process for waiver of interest and penalty
Taxpayers must apply through specific forms for this waiver. Forms to be submitted are:
- Form GST SPL-01: For notices/statements under Section 128A(1)(a), detailing the notice and tax payments made.
- Form GST SPL-02: For orders under Section 128A(1)(b) & 128A(1)(c), detailing payments and relevant orders.
- You need to make the full tax payment using Form GST DRC-03 in GST SPL-01 and Form GST DRC-03, DRC-03A in GST SPL-02 by March 31, 2025.
- Submit the appropriate waiver form such as GST SPL-01 or GST SPL-02 by June 30, 2025.
- If you filed an appeal or writ, you have to provide proof of withdrawal along with your application.
- The application will be reviewed by the assigned officer, who will approve or reject it within a specified time.
Benefits from Waiver of Interest and Penalties
Taxpayers can get the benefit from the waiver once they have paid the full tax amount due by March 31, 2025.
Salient Features
- Applicability of the scheme will start from 1st Nov 2024.
- This scheme operates on an SCN or order-wise basis which means taxpayers need to address all issues related to a specific SCN or order.
- To go into the Scheme one has to pay the full tax amounts and then can get a waiver of interest.
- Payment against SCN or Order must be cleared under the scheme but before that appeal may be filed with a pre-deposit.
- Ensure that the appeal must be filed within the one month; otherwise scheme will be not eligible.
- Cases in Appeals or before court have to be withdrawn for going into the scheme.
- Cases of refund are not covered.
Note : Once resolved under the scheme, the case cannot be appealed again.
Industry Representations and Suggestions
- Experts requested to include cases with demands solely for interest or penalties.
- Suggestions to include allowing the use of the ITC Ledger for tax payments under the scheme.
- To permit taxpayers to address issues separately for financial years (2017-18 to 2019-20) while managing other years independently.
Points to Remember
- Taxpayers need to pay the tax amount as amnesty is only available for interest and penalty.
- No relief available if demand issued under sec 74, however if notice issued under sec 74 later redetermined u/s 73 then benefit is available.