Through Notification No.21/2024–Central Tax, the Central Board of Indirect Taxes and Customs ( CBIC ), notified the Central Goods and Services Tax ( GST ) Amnesty Scheme procedure and conditions for the waiver of penalty and interest.
The notification brings new changes under Rule 164 of the GST rules, effective from November 1, 2024. The new rule is related on the procedure and conditions for closure of proceedings under Section 128A related to demands raised under Section 73, allowing taxpayers to apply for waiver of interest or penalty.
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As per the rule, the Taxpayers can file applications for interest or penalty waiver electronically using FORM GST SPL-01 or FORM GST SPL-02 based on their case. It was notified that the waiver applies to taxpayers with notices, statements, or orders issued under Section 128A, and covers both erroneous refunds and other tax demands.
As per the notification, the applications must be filed within three to six months from the date notified under Section 128A, depending on the case. In case of withdrawal of appeal, the applicants must submit proof of withdrawal of any appeals or writ petitions to qualify for the waiver. It was also pointed that the proper officers will assess the applications and issue notices if the waiver claim is ineligible, providing taxpayers an opportunity to respond.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The Notification also mentioned about rectification, it was notified that “Where any rectification is required to be made in the order referred to in paragraph 1 and, the said authority has issued a rectified order thereof, then the said authority shall upload a summary of the rectified order electronically–
(i) in FORM GST DRC-08, in cases where rectification of an order issued under section 73 or section 74 of the said Act is made; and
(ii) in FORM GST APL-04, in cases where rectification of an order issued under section 107 or section 108 of the said Act is made.”
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The rectification is required to be made only in respect of demand of such input tax credit which has been alleged to be wrongly availed in contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of the said section 16.
The Notification simplifies the process for resolving GST disputes, offering a streamlined approach to waiving interest and penalties.
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