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 offers 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.
Key Takeaways
| Purpose | Reduces penalties for pending GST returns. |
| Penalty Waiver | This scheme waives interest and penalties on tax demands for FY 2017-18 to 2019-20 if paid by 31st March 2025. |
| Critical Deadlines | Tax payment by 31st March 2025, waiver applications (GST SPL-01/02) by 30th June 2025. |
| Eligibility | Covers non-fraud cases, excludes fraud & pending appeals unless withdrawn. |
| No Refunds | Paid interest/penalties not returned. |
| Forms Available | GST SPL-01 & SPL-02 live on GST portal from Jan 2025 for online filing. |
Effective From
The GST Amnesty Scheme 2024, introduced u/s 128A of the Central Goods and Services Tax (CGST) Act, is a taxpayer relief initiative effective from 1st November 2024.
Benefits GST Amnesty Scheme
- It reduces financial burdens by waiving interest and penalties, provided the tax is paid by March 31, 2025.
- Encourages taxpayers to settle dues and regularize GST filings, reducing litigation.
- Businesses with cancelled GST registrations due to non-filing can re-register and ensure easy compliance.
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.
Exclusions
- Cases involving fraud u/s 74 are ineligible.
- No waiver if an appeal or writ petition is pending and not withdrawn by the deadline.
- Not applicable to erroneous refunds or demands u/s 16(4) [time limit for ITC claims] unless adjusted per Section 16(5)/(6).
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.
Deadlines To Remember
- 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.
Salient Features
- Applicability of the scheme started 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.
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 re-determined u/s 73 then benefit is available.