Avail Benefit of GST Amnesty Scheme 2024: Here's how you can do

The GST Amnesty Scheme 2024 is a relief initiative introduced by the Central Board of Indirect Taxes and Customs ( CBIC ) under Section 128A of the CGST Act. This scheme was effective from November 1, 2024, and provides taxpayers with an opportunity to resolve their GST liabilities from the early years of GST implementation (July 1, 2017–March 31, 2020).

It gives a waiver on penalties and interest for eligible cases provided the taxpayer clears their outstanding tax liabilities by March 31, 2025.

This detailed article covers every detail of the GST Amnesty Scheme from eligibility and benefits to procedural steps and important deadlines to help taxpayers make the most of this opportunity.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

What is the GST Amnesty Scheme 2024?

The GST Amnesty Scheme is part of the government’s effort to simplify compliance and reduce the financial burden on businesses. It targets non-fraudulent cases under Section 73 of the CGST Act allowing taxpayers to settle their pending dues while avoiding penalties and interest.

The scheme is especially beneficial for businesses that faced challenges during the initial GST implementation years providing them with a clean slate to regularize their GST records. Please Note that no repayment will be given if you have already paid the interest and penalty.

Important Features:

1. Waiver of penalties and interest for specified cases.
2. GST liabilities from July 1, 2017, to March 31, 2020.
3. Payment Deadline: March 31, 2025.
4. Exclusions: Fraudulent cases, erroneous refunds, and cases involving willful misstatements or suppression of facts.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

Eligibility Criteria for the GST Amnesty Scheme

The GST Amnesty Scheme applies only to non-fraudulent cases under Section 73. Here are the eligible scenarios:

1. Notice Issued but No Final Order Passed: A notice or statement under Section 73(1) or 73(3) has been issued but no final adjudication order has been passed.

2. Order Passed, Appeal or Rectification Pending: An order under Section 73(9) has been issued but it is under appeal or rectification and no appellate decision has been made.

3. Tribunal or Higher Authority Decision Pending: An appellate authority order has been passed under Section 107 or 108 but the case has escalated to the GST Tribunal and no decision has been issued.

Special Provisions:

1. Cases Remanded Back: If a fraud-related notice under Section 74 has been remanded by appellate authorities or courts for fresh adjudication under Section 73, it is covered under this scheme.
2. Departmental Appeals: If an adjudication order is in favor of the taxpayer but the department has filed an appeal, the taxpayer is still eligible under the scheme, provided it falls under Section 73 of the CGST Act.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

Benefits of the GST Amnesty Scheme

1. Interest under Section 50 and penalties imposed under the CGST Act will be waived, provided the taxpayer clears the full tax liability by March 31, 2025.

2. By following the scheme’s conditions, taxpayers can close all pending GST proceedings related to the covered period.

3. The scheme simplifies tax resolution and ensures clean GST records for future compliance.

Key Deadlines to Remember

1. Tax Payment Deadline: All outstanding tax dues must be paid by March 31, 2025.
2. Form Submission Deadline: Applications for waivers must be submitted within three months of tax payment completion.

Step-by-Step details to Avail the GST Amnesty Scheme

1. Determine Eligibility

• Verify that your case pertains to non-fraudulent GST liabilities under Section 73.
• Ensure the tax period is between July 1, 2017, to March 31, 2020.

2. Make the Tax Payment

• Notice Issued, No Order Passed: Use Form DRC-03 to pay outstanding taxes.
• Order Passed: Pay through the Electronic Liability Ledger in the GST portal.

Note: Payments can be made using:

• Input Tax Credit (ITC), except for RCM-related liabilities.
• Cash is mandatory for RCM liabilities or erroneous refund demands.

3. File the Required Form

• Form SPL-01: For cases where a notice or statement has been issued but no final order has been passed.
• Form SPL-02: For cases where orders have been issued or appellate decisions are pending.

Documents to Attach:

• Proof of tax payment (e.g., DRC-03 acknowledgment).
• Withdrawal acknowledgment for any appeals or writ petitions related to the case.

4. Address Show Cause Notices

• If discrepancies arise, the GST officer will issue a Show Cause Notice (Form SPL-03).
• Taxpayers must respond within one month using Form SPL-04.

5. Await Final Approval

• Approved applications will result in a waiver order issued via Form SPL-05.
• Rejected applications will be notified in Form SPL-07 and taxpayers may file an appeal.

6. File Appeals for Rejected Applications

• Appeals can be filed under Section 107 using Form APL-01 within three months of the rejection.

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

Additional Clarifications from CBIC's Circular No. 238/32/2024

To clarify things, the CBIC issued Circular No. 238/32/2024 on October 15, 2024. Clarifications include:

1. Payments can be made using ITC or cash except for RCM liabilities which must be settled in cash.
2. Pre-deposits made during appeals can be adjusted against the total tax liability.
3. Taxpayers must pay the entire demand amount in cases with multiple issues. Partial payments are not permitted.
4. Cases involving erroneous refunds are excluded from the scheme, and taxpayers must clear the full demand including interest and penalties.

Common Clarifications

1. Taxes paid before the scheme’s introduction are eligible for benefits, provided they meet Section 128A criteria.
2. The scheme covers cases with only interest or penalty notices and delayed return filings and related interest are excluded.
3. For demands spanning multiple periods, taxpayers must pay the full amount, but waivers apply only to periods covered by Section 128A.
4. Erroneous refunds must be fully repaid to avail benefits under this scheme.
5. ITC can be used for payments, except for RCM liabilities or erroneous refund demands.

Conclusion

With the March 31, 2025, deadline fast approaching, act now to take full advantage of this initiative. Don’t miss this chance to clean your GST slate.

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