Top Stories New GST Amnesty Scheme Effective November 1: Know about Important Deadlines and Benefits The GST Amnesty Scheme starting November 1 allows taxpayers to clear dues with waived penalties and interest if paid by March 31, 2025 By Kavi Priya – On November 2, 2024 9:17 pm – 3 mins read The Central Board of Indirect Taxes and Customs ( CBIC ) has introduced a new GST Amnesty Scheme under Section 128A of the Central Goods and Services Tax ( CGST ) Act. This scheme, effective from November 1, 2024, aims to waive penalties and interest on specific tax demands, creating a pathway for eligible taxpayers to clear outstanding dues without the added burden of financial penalties. Complete Draft Replies of GST ITC Related Notices, Click Here
Eligibility The GST Amnesty Scheme primarily targets tax demands raised under Section 73 of the CGST Act for the period from July 1, 2017, to March 31, 2020. Specifically, it applies to cases involving notices or statements where: A notice or statement under sub-section (1) or (3) of Section 73 has been issued, but no final order has been passed. An order has been issued under sub-section (9) of Section 73, but no further appellate action has been initiated under Section 107 or 108. An appellate decision has been issued under Section 107 or 108, but the case has not escalated to Section 113. It is essential to note that the scheme covers only non-fraudulent cases, which excludes instances involving fraud, willful misstatement, or suppression of facts. Additionally, erroneous refunds are not eligible under this scheme. Complete Draft Replies of GST ITC Related Notices, Click Here Benefits of the Amnesty Scheme
The scheme aims to alleviate the compliance and financial burden on businesses and individual taxpayers by offering the following benefits: Waiver of Interest and Penalties: Upon full payment of the tax demand by March 31, 2025, taxpayers will be exempt from any interest under Section 50 or penalties. Closure of Pending Proceedings: By meeting the scheme’s requirements, taxpayers can resolve their tax issues, and all related proceedings will be deemed closed.
This amnesty is expected to help taxpayers clear up their outstanding GST demands without worrying about additional financial consequences, making it a beneficial initiative for those who faced challenges during the initial years of GST implementation. Important Deadlines To take advantage of this scheme, taxpayers must adhere to the following deadlines: Tax Payment Deadline: The entire amount of the outstanding tax must be paid by March 31, 2025. Form Submission: Taxpayers should submit the necessary forms by June 30, 2025, ensuring all procedural steps are correctly followed. Complete Draft Replies of GST ITC Related Notices, Click Here Application Process Eligible taxpayers are required to apply for the amnesty scheme using specific forms: Form GST SPL-01: For cases where a notice or statement was issued under Section 128A, detailing the tax amount due and payments made. Form GST SPL-02: For orders already issued under Section 128A, including information about payments and relevant orders.
These forms must be submitted online, and taxpayers should ensure payments are made via the electronic liability register before submission. Tax payments can be completed using the electronic cash ledger, input tax credit ( ITC ) via the electronic credit ledger, or a combination of both. Steps and Compliance Measures for Availing Amnesty To avoid rejections and ensure successful application, taxpayers should follow these steps: Full payment of the outstanding tax is required before submission.
The appropriate form should be chosen based on whether a notice or order was received. For cases where an appeal or writ is pending, proof of withdrawal must accompany the application. An assigned GST officer will review the application and, after assessing compliance, approve or reject it within a specified timeframe. Note: The amnesty scheme does not apply to all taxpayers, and certain exclusions are cases where tax demands arise due to erroneous refunds they are not eligible for the waiver, and taxpayers with pending appeals or writ petitions must withdraw them before applying. This means that cases awaiting appellate authority, tribunal, or court judgments are excluded unless withdrawn. Complete Draft Replies of GST ITC Related Notices, Click Here
Why Taxpayers Should Consider the Amnesty Scheme This scheme represents an opportunity for taxpayers to address their outstanding tax dues without the additional costs of interest and penalties, a move that will ease financial burden, especially for small businesses. This initiative not only addresses the compliance and payment challenges but also aligns with the government’s goal to streamline GST and support businesses across India. Taxpayers are advised to take advantage of this opportunity to resolve any lingering GST issues and ensure compliance by the specified deadlines.