New update on GST Amnesty Scheme waiver of penalty and interest:
These taxpayers need to withdraw their appeal and then apply for the scheme
Jan 14, 2025
Synopsis
Goods and Service Tax: In a new advisory dated January 14, 2025 GSTN said certain taxpayers are are advised to submit their request for withdrawal of appeal applications to the concerned Appellate Authority. The Appellate authority will forward such requests to GSTN through State Nodal officer for withdrawal of such appeal applications (i.e. filed before 21.03.2023 and not disposed off) from backend.
New advisory by GSTN: These taxpayers who wish to apply for GST Amnesty Scheme u/s 128A need to apply to appellate authority first to withdraw the appealGetty ImagesNew advisory by GSTN: These taxpayers who wish to apply for GST Amnesty Scheme u/s 128A need to apply to appellate authority first to withdraw the appeal
Goods and Service Tax (GST) registered taxpayers who wish to apply for the GST Amnesty Scheme 2024 under section 128A announced in Budget 2024, should note about a procedural change in filing its application. Without submitting a request for withdrawal of appeal, the taxpayer cannot apply for the GST Amnesty Scheme under section 128A. The change is applicable to certain taxpayers specified by GSTN and to be eligible for the amnesty scheme application, they must first apply to the concerned appellate authority to withdraw their existing appeal and then they can apply for the Amnesty Scheme under section 128A. For these specified taxpayers the withdrawal of appeal option is not available on the GST portal.
Read below to find out which taxpayers need to first apply to the appellate authority to withdraw their appeal (if any) and then apply for the GST Amnesty Scheme waiver of interest and penalty under section 128A.
Who need to apply to the appellate authority to withdraw the appeal and then apply for Amnesty scheme
If a taxpayer had filed an appeal against the respective GST notice using GST APL 01 form before March 21, 2023 then the taxpayer needs to submit their request for withdrawing such an appeal to the concerned appellate authority first.
In an advisory dated January 14, 2025, GSTN said: “One of the eligible conditions for filing application under waiver scheme is to withdraw the appeal applications filed against the demand order/notice/statement for which waiver application is to be submitted.”
“In this regard, it is to inform that for the appeal applications (APL 01) filed before First Appellate authority, withdrawal option is already available in the GST portal. However, for the appeal applications (APL 01) filed before 21.03.2023, withdrawal option is not available in the GST portal. For such cases, the taxpayers are advised to submit their request for withdrawal of appeal applications to the concerned Appellate Authority.”
“The Appellate authority will forward such requests to GSTN through the State Nodal officer for withdrawal of such appeal applications (i.e. filed before 21.03.2023 and not disposed off) from backend.”
What is the GST Amnesty Scheme under section 128A?
According to chartered accountant Siddharth Surana, PGDM from IIM Bangalore, This scheme offers a one-time waiver of interest and penalties for certain cases raised under Section 73 of the CGST Act. “Cases involving erroneous refunds are, however, not covered. Taxpayers must deposit 100% of the tax demanded to avail of the waiver, which makes it crucial to assess if a case falls under the eligible categories," he says.
Deadline to apply for GST Amnesty Scheme under section 128A waiver of interest and penalty
Surana says, "As per department circulars, the deadline for the standard amnesty applications is 31st March 2025 and this is the standard deadline for both making application and doing payment of tax disputed."
GSTN informed in the advisory that now the only two forms GST SPL-01 and SPL-02, used for applying for it are now both available on the GST portal. To apply for this scheme the taxpayer should withdraw any pending appeal, then use either of these forms to apply and then make 100% of the payment of GST tax demanded on or before March 31, 2025.
Which type of GST notices are eligible for the Amnesty Scheme under section 128A?
According to Surana, notices eligible for this waiver are those where the demands pertain to regular non-fraudulent issues like clerical errors, delays in filing returns, short payment of tax and/ or excess availment of tax.
“The root cause of these notices should be genuine mistakes or alternate interpretation of GST legal provisions without any malafide intention. Further, only the GST notices for the period from 1 July 2017 to 31 March 2020 (both dates included) are eligible for benefits under Section 128A,” says Surana.
Surana says, the amnesty scheme under Section 128A is primarily designed to cover demands raised under Section 73, which pertains to non-fraudulent situations. “These may include errors in return filing or reporting of transactions, delays in filing, and genuine cases involving short payment of tax or excess claims of input tax credits, particularly where the issue stems from alternate interpretations of the evolving GST law,” he says.
GST notice under section 74 fraud cases are not eligible for GST Amnesty Scheme
Surana says, it is important to note that this scheme does not extend to cases of erroneous refunds, where a taxpayer may have claimed and received refunds they were not entitled to.
“Section 74 cases are excluded from the scope of this amnesty scheme. Section 74 deals with situations involving fraud, willful misrepresentation, or suppression of facts, which are considered serious contraventions,” says Surana.
[The Economic Times]
