The New GST Amnesty Scheme under Section 128A

On November 1, 2024, the Government of India introduced a new amnesty scheme under Section 128A of the Goods and Services Tax (GST) Act. This scheme aims to provide relief to taxpayers by waiving interest and penalties for specific GST demands from the financial years 2017-18 to 2019-20. Below, we’ll delve into the essential features, conditions, and the necessary forms for availing this amnesty.

Key Highlights of the GST Amnesty Scheme

1. Applicability Period:
   The amnesty scheme is effective from November 1, 2024. Taxpayers who have outstanding GST dues for specific years may avail the benefits within this period.
2. Waiver of Interest and Penalties:
   This scheme primarily provides a waiver on interest and penalties associated with GST demands for the years 2017-18 to 2019-20. However, it is important to note that this waiver applies only to non-fraudulent cases, specifically those cases covered under Section 73 of the GST Act. Section 73 deals with situations where tax has not been paid, has been short-paid, or has been erroneously refunded due to genuine errors and not due to fraud or willful misstatements.
3. Non-Refundable Payments:
   If interest and/or penalties have already been paid by the taxpayer for these specific demands, the scheme does not provide any provision for refunds. This means taxpayers who have already made these payments cannot claim any amount back under this amnesty.
4. No Waiver on Tax Amount:
   The scheme does not waive the tax liability itself. Taxpayers are still required to pay the principal tax amount. To avail the benefits of the scheme, all pending tax dues must be settled by March 31, 2025.

Forms Required for Availing Amnesty

To take advantage of this scheme, taxpayers must follow a set process that involves submitting specific forms based on the stage of their GST demand.

1. GST SPL-01:
   This form is for cases where a notice has been issued, but no order has been passed yet. Taxpayers in this situation must submit GST SPL-01 to initiate the amnesty process.
2. GST SPL-02:
   In cases where an order has already been passed, the taxpayer must submit GST SPL-02. This form should be filed within three months from March 31, 2025, making June 30, 2025 the final deadline for filing GST SPL-02.
3. GST SPL-03:
   After receiving an application for waiver, the responsible officer will issue GST SPL-03 within three months. This form is issued if there is a need to reject the waiver application due to any discrepancies or ineligibilities found during the review.
4. GST SPL-04:
   If the taxpayer receives GST SPL-03, they may need to address the issues raised. GST SPL-04 is to be submitted by the taxpayer within one month of receiving GST SPL-03 to provide necessary clarifications or corrections.
5. GST SPL-05:
   If the waiver application is approved, GST SPL-05 will be issued by the officer, formally granting the waiver. This form is generally issued within three months if GST SPL-03 is not issued. However, if GST SPL-04 has been submitted by the taxpayer, GST SPL-05 should be issued within four months of receiving SPL-04.

Important Considerations

• Only Non-Fraud Cases Covered: This scheme strictly applies to non-fraud cases under Section 73. Fraudulent cases under Section 74 are not eligible for any waiver of interest or penalties.
• Deadline Awareness: Taxpayers must keep track of the deadlines associated with this scheme to avoid missing out on the benefits. For example, while March 31, 2025, is the cut-off date for paying pending tax dues, June 30, 2025, is the deadline for submitting GST SPL-02.
• No Refunds on Past Payments: Any penalties or interest already paid are non-refundable, making it essential for taxpayers to assess their cases before taking any actions under this scheme.

Conclusion

The new GST Amnesty Scheme under Section 128A is a beneficial measure for taxpayers facing interest and penalty charges for past GST dues. By providing waivers for non-fraudulent cases from 2017-18 to 2019-20, the scheme aims to reduce the financial burden on businesses, enabling them to settle their past dues without additional penalties. However, since it does not waive the tax amount itself, taxpayers must ensure that their outstanding taxes are paid by the stipulated deadline to fully avail themselves of this amnesty scheme.

For those looking to take advantage of this scheme, understanding the application process and the deadlines associated with each form is crucial. Timely action can help eligible taxpayers resolve their pending GST liabilities with minimized costs, enabling them to move forward without the burden of accumulated interest and penalties.