Details

The GST Amnesty Scheme 2024, effective from November 1, 2024, under Section 128A of the CGST Act, provides taxpayers an opportunity to settle GST demand notices for FY 2017-18, 2018-19, and 2019-20 by waiving interest and penalties. This blog outlines the scheme’s essentials, eligibility, and application process to help taxpayers understand their options.

Overview of the Scheme

The scheme waives interest (under Section 50) and penalties (under Sections 73, 122, etc.) for non-fraudulent GST demand notices issued under Section 73. Taxpayers must pay the full tax amount by March 31, 2025, through the GST portal. The initiative aims to reduce litigation and assist businesses in resolving past GST liabilities.

Eligibility Criteria

The scheme applies to:

• Notices/orders under Section 73 for FY 2017-18 to 2019-20.
• Taxpayers who have paid the tax or will pay by March 31, 2025, using the electronic cash ledger, Input Tax Credit (ITC), or both (except for Reverse Charge Mechanism, e-commerce under Section 9(5), or erroneous refund cases).
• Cases where pending appeals, writ petitions, or Special Leave Petitions are withdrawn before applying.
• Notices reclassified from Section 74 (fraud) to Section 73 by appellate authorities.

Exclusions: The scheme does not cover late fees, redemption fines, or demands related to erroneous refunds or import IGST under the Customs Act.

Important Deadlines

• Tax Payment: By March 31, 2025.
• Waiver Application: Submit Form GST SPL-01 (for notices without orders) or Form GST SPL-02 (for orders) by June 30, 2025, via www.gst.gov.in.
• Appeal Withdrawal: Proof of withdrawal (or withdrawal application) must accompany the waiver application. If the withdrawal order is pending, submit it within one month of issuance.

Application Process

1. Pay the full tax amount via the GST portal’s electronic cash or credit ledger.
2. Adjust prior payments, if any, using Form GST DRC-03A to reflect in the Electronic Liability Register.
3. Access www.gst.gov.in, navigate to Services > User Services > My Applications, and select Apply for Waiver Scheme under Section 128A.
4. Submit Form GST SPL-01 or SPL-02, including proof of tax payment and appeal withdrawal documents.
5. The proper officer will issue:
   • Form GST SPL-05 for approval of the waiver.
   • Form GST SPL-07 for rejection, after issuing a notice (Form GST SPL-03) and providing a hearing opportunity.

Note: Separate applications are required for each notice or order.

Benefits of the Scheme

• Eliminates interest (18% per annum) and penalties, reducing financial liability.
• Resolves pending disputes, minimizing litigation.
• Enables taxpayers to regularize GST compliance for the specified years.

Key Considerations

• No Refunds: Interest or penalties already paid are non-refundable.
• Complex Notices: If a notice includes periods beyond 2017-20, additional interest or penalties for those periods must be paid within three months of the waiver approval, or the waiver becomes void.
• Accurate Submission: Missing deadlines or errors in application forms may lead to rejection.

Next Steps

Taxpayers with pending GST notices for FY 2017-18 to 2019-20 should review their liabilities and ensure timely tax payment by March 31, 2025. Applications must be filed by June 30, 2025, to avail of the waiver. For detailed guidance, contact us today.