Comprehensive Guide to GST Amnesty Scheme under Section 128A of Finance Act (No.2) 2024
Introduction
The GST Amnesty Scheme, introduced under Section 128A of the Finance Act (No. 2) 2024, is a significant relief measure aimed at resolving long-pending disputes under Section 73 of the CGST Act. Effective from 1st November 2024, this scheme allows eligible taxpayers to seek waiver of interest, penalty, or both for specified tax periods provided they pay the full tax amount within the prescribed timeline.
This scheme targets disputes related to GST notices, pending appeals, and re-adjudicated cases under Section 73 for the period between 1st July 2017 to 31st March 2020.
The scheme not only benefits taxpayers by reducing their financial burden but also helps the government clear pending litigation cases. By addressing tax disputes from the initial GST implementation period, this amnesty scheme aims to create a cleaner compliance landscape for businesses.
Period Covered under the Scheme
- 1st July 2017 to 31st March 2020
The defined period covers the early GST implementation phase, addressing common disputes that arose due to initial confusion and procedural issues faced by taxpayers during the adoption of GST.
I) List of Cases Covered under the GST Amnesty Scheme
The GST Amnesty Scheme specifically addresses disputes that fall under four categories:
| Sr. No. | Section | Case Covered | Condition | Interest Waiver | Penalty Waiver |
| 1 | 73(1) or 73(3) | Show Cause Notice (SCN) | SCN pending at adjudication with no order under Section 73(9) issued. | Yes | Yes |
| 2 | 73(9) | Order-in-Original (OIO) | First appeal is pending with no Order under Section 107(11) or 108(1) issued. | Yes | Yes |
| 3 | 107(11) or 108(1) | Order-in-Appeal (OIA) | Second appeal is pending with no Order under Section 113(1) issued. | Yes | Yes |
| 4 | 74(1) | Show Cause Notice | If the case was remanded back for adjudication under Section 73 as per Section 75(2) of the Act. | Yes | Yes |
Key Insights:
- Taxpayers involved in disputes arising from pending SCNs, Orders-in-Original (OIO), or Orders-in-Appeal (OIA) qualify for the waiver if no final decision has been passed.
- The scheme also extends to cases originally filed under Section 74 but later re-adjudicated under Section 73.
II) Time Limit to Pay Tax Under Dispute
- For cases under Section 73: Payment must be made by 31st March 2025.
- For cases under Section 74, remanded for re-adjudication under Section 73: Payment must be made within 6 months from the date of the re-adjudication order.
Adhering to these timelines is crucial, as failure to meet the deadlines will disqualify taxpayers from availing the waiver benefits.
III) Conditions for Availing the Amnesty Scheme
Primary Condition:
- The taxpayer must pay the full tax amount before the specified date.
Additional Conditions:
- No refund will be provided for interest or penalty already paid for the specified period.
- The scheme does not apply to cases related solely to erroneous refund demands.
- The scheme’s benefit will be withdrawn if an appeal or writ petition is filed unless withdrawn before applying under this scheme.
IV) Procedure for Filing Application Under the Scheme
1. Application Form and Time Limits
| Sr. No. | Case Covered | Form for Application | Form for Payment of Tax | Time Limit |
| 1 | SCN under Section 73(1) or 73(3) | FORM GST SPL-01 | FORM GST DRC-03 | Within 3 months from notification date; Last date: 30.06.2024 |
| 2 | OIO under Section 73(9) | FORM GST SPL-02 | FORM GST DRC-03 | Within 3 months from notification date; Last date: 30.06.2024 |
| 3 | OIA under Section 107(11) or 108(1) | FORM GST SPL-02 | FORM GST DRC-03 | Within 3 months from notification date; Last date: 30.06.2024 |
| 4 | Remanded Case under Section 74(1) | FORM GST SPL-02 | FORM GST DRC-03 | Within 6 months from order date |
Important Note:
- Payment must be made through the Electronic Liability Register (ELR) via credit entry.
- For taxpayers who made earlier payments using DRC-03, an additional form DRC-03A must be filed to adjust those payments.
2. Documents Required
- Form DRC-03 indicating full tax payment.
- Proof of appeal/writ petition withdrawal (if applicable).
- If the withdrawal order is pending, submit the application for withdrawal and later provide the final withdrawal order within 1 month of issuance.
3. Notices, Orders, and Appeals
Notices and Orders:
- Proper Officer may issue FORM GST SPL-03 if not satisfied with the application, and the applicant can respond using FORM GST SPL-04 within 1 month.
- If satisfied, the Proper Officer will issue FORM GST SPL-05 within 3 months from receiving the application.
- If rejected, the officer will issue FORM GST SPL-07.
Appeals:
- If the application is rejected under FORM GST SPL-07, the taxpayer can file an appeal under FORM GST APL-01 solely regarding the scheme’s applicability (not the original notice’s merits).
Conclusion
The GST Amnesty Scheme introduced under Section 128A is a timely opportunity for taxpayers to resolve prolonged disputes under Section 73 of the GST Act. By providing a complete waiver of interest and penalties, the scheme ensures significant financial relief for eligible taxpayers while enabling the government to reduce litigation backlogs.
Taxpayers facing unresolved disputes from the early GST implementation phase should leverage this opportunity to achieve compliance and peace of mind. The streamlined application process ensures clarity, and adherence to the specified timelines is crucial for maximizing benefits.
