GST Interest and Penalty Waiver Scheme under Section 128A provides provide a big relief to the taxpayers for reducing the tax disputes.
What’s the Big Relief?
GSTN has announced a waiver scheme for interest and penalties on GST demands for certain past financial years.
Overview of This Waiver Scheme
Purpose
The GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017
Eligibility
GST interest and penalty waiver is applicable only those cases that are not involving fraud, suppression, or willful misstatement.
Financial Years Covered under this GST Waiver Scheme
Financial years 2017-18, 2018-19, and 2019-20.
Conditions to Qualify for the Waiver
Full payment of the tax demanded must be paid by March 31, 2025.
New Forms can be used for Waiver are GST SPL-01 and SPL-02.
Advisory For GST Interest and Penalty Waiver
Overview of Forms GST SPL-01 and SPL-02
Taxpayers can use Forms GST SPL-01 and SPL-02 to apply for the waiver of interest and penalties under the new scheme.
Availability Of Form
Forms GST SPL-01 and SPL-02 will be available from January 2025.
Filing Deadline
Applications must be filed by March 31, 2025.
Role of Form GST DRC-03A in this waiver process
If taxpayers have already made the “payment towards demand” facility in case of demand orders and through Form GST DRC-03 in case of notices, than they need to link the payment to the corresponding demand order using Form GST DRC-03A which is now available on the portal.
How does Rule 164 help in implementing the interest and penalty waiver scheme?
Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated. 8th October 2024, effective from 1st November 2024. This rule provides procedural guidelines for the said waiver scheme. As per the waiver scheme, if a notice or order is issued under Section 73 for the financial years 2017-18, 2018-19 and 2019-20, the taxpayers are required to file an application in FORM GST SPL-01 or FORM GST SPL-02, respectively on the common portal within three months from notified date, which is 31.03.2025.
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FAQs
The purpose is to provide a relief to taxpayers with demand notices u/s 73 if there is no fraud, suppression, or willful misstatement involved.
The application must be filed within three months of the form’s release, ending on March 31, 2025.
Payments can be made via the “payment towards demand” option on the portal or through Form GST DRC-03.