The Government of India has come up with a long-awaited GST Amnesty Scheme under Section 128A of the Central Goods and Services Tax (CGST) Act, 2017. This is an announcement of a one-time scheme applicable after November 1, 2024, where taxpayers against whom GST liabilities remain outstanding can settle such demands for older financial years without incurring interest and penalty liability. The scheme is also expected to help resolve litigation cases pending before various tax authorities by offering ways to settle disputes and promoting compliance.
This blog provides a detailed insight into the scheme, with a particular focus on the dates for waiver applications, eligibility criteria, prerequisites, procedural provisions, and the legal consequences of the scheme for taxpayers.
Objective of the GST Amnesty Scheme
The leading purpose of the GST Amnesty Scheme 2024 is to give a concession to the taxpayers against GST demand orders issued under Section 73, and this section is related to non-fraudulent tax-related disputes. The scheme also covers the following cases in Section 74, within the same range as in Section 73, and is subsequently re-characterized by the tax officials.
This initiative demonstrates the government’s intention to ease doing business, reduce tax litigation, and provide a fair deal to genuine taxpayers, allowing them to rectify their earlier non-compliant situation without disproportionate punishment.
Scope and Applicability
The scheme is available on the tax demands issued for the financial years 2017-18, 2018-19, and 2019-20. It becomes effective when no factor of fraud, suppression or deliberate misrepresentation applies to the case.
The benefits of using this scheme are available to the taxpayers who have received orders or notices under section 73 of the CGST Act or the reassessment orders passed under section 74, but subsequently amended or subjected to amendment under section 73.
It must be noted that tax amounts are the ones to be paid in this scheme. All correlative and penalty fees will be waived completely when the terms and conditions are met.
Waiver Application Deadline and Tax Payment Timeline
The deadline for applying and fulfilling payment obligations is the most crucial aspect of this scheme. To avail of the waiver, the taxpayers are bound to follow the following deadlines:
- Last Date of Payment of Tax Demand
All taxes, as per the GST demand order, must be paid by 31 March 2025. The relief under the scheme is subject to the full obligation to pay the full amount of tax liability by this day. Any postponement after this date will render the taxpayer ineligible to benefit from the waiver of interest and penalties.
- Application Deadline for the Waiver
An application waiver under the scheme should be filed by 30 June 2025, or six months following the date the modified reassessment order is communicated, whichever is later. Such expanded coverage applies where orders initially issued under Section 74 have later been re-classified under Section 73.
Summary of Key Deadlines
| Particulars | Deadline |
| Effective Date of Scheme | 1 November 2024 |
| Last Date for Tax Payment | 31 March 2025 |
| Last Date to Apply for Waiver | 30 June 2025 (or 6 months from reassessed order) |
Conditions for Availing the Amnesty
To take advantage of the GST Amnesty Scheme, the following should be met:
- The taxpayer needs to pay the full amount of tax indicated in the notice or order. Partial payments or payments not given within the time will be disqualified from enjoying the scheme benefits.
- The taxpayer should also withdraw his pending appeal, writ petition or any other legal challenge which he might have preferred against the GST order. The scheme also mandates that the applicant produce documentary evidence of withdrawal, with an acknowledgement or a screenshot in the GSTN portal or that of the corresponding court or tribunal.
- My taxpayer, in the event that the initial order was made under Section 74 and the order has been amended to Section 73, needs to submit a copy of the amended reassessment order so that it reflects the change in the classification of such section.
Procedure to Be Adopted under the Scheme
The procedure for applying under the GST Amnesty Scheme already has a systematic online process that an eligible taxpayer can follow, as laid down in Rule 164 of the CGST Rules.
The different forms have been assigned based on the type of tax demand. To illustrate, in respect of a show cause notice or statement, a taxpayer should submit Form GST SPL-01, whereas in the event of a final demand or appellate orders, Form GST SPL-02 should be submitted.
Further forms can be developed (SPL-03 to SPL-08), which can be used to submit clarifications, upload supporting documents, or check the application status. All the submissions should be electronically submitted using the GST portal.
Benefits of the GST Amnesty Scheme
- The scheme would offer significant relief on the financial front, as it is another way of providing some fitting financial relief in the form of the removal of interest and penalties, which can comprise a substantial percentage of GST demands.
- Taxpayers are left with a clean record of compliance, and they do not have to assume the burden of costly litigation, which can result in being out twice or thrice as long.
- It enables companies to start anew in case their GST registration is revoked due to non-compliance or unpaid bills.
- Voluntary compliance and the tendency to minimize the pendency of the tax appeals also benefit the government.
Conclusion
The GST Amnesty Scheme 2024, introduced under Section 128A, is an opportunity to clear long-pending taxation disputes by business and individual taxpayers without the liability of interest and penalty. It is very important that we comply with the payment deadline of March 31, 2025, and the application deadline for the waiver of June 30, 2025, in order to enjoy the fruits of this scheme.
Taxpayers are advised to take charge of this process and determine their eligibility, then initiate the application early enough. Process-related peculiarities should also be explained to clients by lawyers and accountants so that the entire process can be completed properly and in a timely manner.
To seek some help to comply with GST, to apply for a waiver, or even withdraw from an appeal, you should contact a competent tax counsel/auditor or GST practitioner in order not to commit any technical mistake, but also to ensure full relief under this popular scheme.
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