GSTN Advisory: Implementation of Waiver Scheme under Section 128A

The Goods and Services Tax Network (GSTN) has issued an advisory on January 14, 2025, announcing the activation of Forms GST SPL-01 and GST SPL-02 on the GST portal, facilitating taxpayer applications under the waiver scheme introduced via Section 128A of the Central Goods and Services Tax (CGST) Act, 2017.

Overview of Section 128A Waiver Scheme

Section 128A, introduced to the CGST Act, 2017, offers taxpayers a conditional waiver of interest and penalties for specific tax demands issued under Section 73, pertaining to the financial years 2017-18, 2018-19, and 2019-20. This initiative aims to reduce tax disputes and provide relief to taxpayers by encouraging the settlement of outstanding tax liabilities.

Eligibility Criteria

To be eligible for the waiver scheme, taxpayers must:

• Have received demand notices or orders under Section 73 for the specified financial years.
• Ensure full payment of the tax amount as demanded.
• Withdraw any pending appeal applications related to the demand orders or notices for which the waiver is sought.

Procedure for Application

1. Withdrawal of Appeals:
   • For appeal applications (Form GST APL-01) filed before the First Appellate Authority, a withdrawal option is available on the GST portal.
   • For appeals filed before March 21, 2023, where the withdrawal option is unavailable online, taxpayers should submit a withdrawal request to the concerned Appellate Authority. The authority will forward these requests to GSTN through the State Nodal Officer for backend processing.
2. Filing Waiver Application:
   • After withdrawing the relevant appeals, taxpayers can file their waiver applications using Forms GST SPL-01 or GST SPL-02, now available on the GST portal.
   • Detailed guidelines for filing these forms are accessible on the GST portal to assist taxpayers in the application process.

Assistance and Support

Taxpayers encountering difficulties or requiring assistance with the waiver scheme can raise a ticket under the category “Issues related to Waiver Scheme” at the GST Self-Service Portal.

Conclusion

The activation of Forms GST SPL-01 and GST SPL-02 marks a significant step in operationalizing the waiver scheme under Section 128A, providing taxpayers with an opportunity to settle outstanding tax disputes by availing waivers on interest and penalties. Taxpayers are encouraged to utilize this scheme to regularize their tax affairs and benefit from the relief measures introduced.