The businessmen of Bihar will get relief from interest and penalty for the initial three years of the implementation of Goods and Services Tax ( GST ). For this, the Assembly approved the Bihar Goods and Services Tax (Second Amendment) Bill, 2024. Deputy Chief Minister Samrat Chaudhary introduced the bill in the House on Tuesday.
The Deputy Chief Minister stated that the benefit of this waiver scheme will be available to registered businesses under GST that have received notices under Section 73 of the GST Act for the financial years 2017–18, 2018–19, and 2019–20. Businesses must apply to waive interest and penalties.
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The GST Council had recommended relief from interest and penalties for a period of three years to support businessmen. The GST interest and penalty waiver scheme in Bihar is applicable from November 1, 2024, through an ordinance. An amendment bill has been introduced to formalize this law.
To take advantage of the scheme, businesses must first pay the payable tax. Thereafter, they must apply online for the exemption by submitting either GST SPL-01 or Form GST SPL-2 through the GST Portal.
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Under this scheme, taxpayers will also receive a one-time exemption from late fees. The exemption applies to outstanding GST demands for the tax period between July 1, 2017, and March 31, 2020. A new Section 74A has been inserted under the provisions of this amendment, replacing the earlier Sections 73 and 74. The earlier sections will remain applicable until the year 2023–24.
From the financial year 2024–25 onward, the new section will govern tax determination. Under the new provisions, notices can be issued within 42 months, and orders must be issued within six months.
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