GST Amnesty Scheme 128A: No Interest, Penalty for FY 2017-18 to 2019-20

GST Amnesty Scheme- 128A-No Interest & Penalty from FY 2017-18, 2018-19 & 2019-20 -Simplified

Summary: The GST Amnesty Scheme under Section 128A offers relief for non-fraudulent tax demands from FY 2017-18, 2018-19, and 2019-20, allowing taxpayers to settle unpaid or short-paid taxes, as well as incorrectly availed or utilized ITC, without penalties or interest. Eligible cases under Section 73 of the CGST Act include non-payment, short payment of tax, and errors in ITC claims. Erroneous refunds are not covered under this scheme. For cases where no adjudication order has been passed yet, taxpayers must pay outstanding dues by March 31, 2025, using DRC-03, with interest and penalty waived. If an adjudication order is issued and appealed, payments should be made on the GST portal; if DRC-03 payments were already made, adjustments can be filed using DRC-03A. Taxpayers with appeals before GSTAT but pending orders must also settle dues by March 2025. For cases directed by appellate authorities under Section 75(2), payments are due within six months of redetermination. Payment can be made through the e-cash or e-credit ledger, except for RCM liabilities, which require the e-cash ledger. No refunds will be issued for interest or penalties already paid. From November 1, 2024, taxpayers who settled tax dues before this date are eligible for scheme benefits. After opting for this scheme, taxpayers waive the right to further appeals. Compliance involves timely submission of specific GST SPL forms based on the scheme’s requirements, with deadlines for appeals, waivers, and clarifications structured to facilitate closure by March 2025.

Important points to remember to avail the benefits under this scheme-

1. Demands covered under this scheme related to Section 73of CGST ACT – Non Fruad cases- FY 2017-18,FY2018-19,FY2019-20

• Non-Payment of tax
• Short payment of Tax
• ITC wrongly availed
• ITC wrongly utilised

2. Erroneous refund u/s 73 CGST Act not covered under this scheme.

3. Section 128A(1)-

(a) Notice /statement issued u/s 73 for above stated financial years but no adjudication order passed till now-

• • Taxpayer has to pay tax till 31.03.2025 through DRC-03 and Interest & penalty will be waived off

(b) Adjudication order passed u/s 73, First appeal filed but on order passed till now.

• • Taxpayer has to pay tax till 31.03.2025 through electronic liability payment option at GST portal
  • If already paid through DRC-03 then adjust that through DRC-03A

(c) First Appellate Authority has passed order and appea filed before GSTAT but no oder passed by GSTAT

• • Taxpayer has to pay tax till 31.03.2025 through electronic liability payment  option at GST portal
  • If already paid through DRC-03 then adjust that through DRC-03A

IST proviso- Notice issued u/s 74, but Order is passed or is to be passed u/s 73 on the direction of Appellate Authority or Court [S. 75(2)] – Taxpayer has to pay tax Within 6 months of redetermination order u/s 73

2ND proviso- Revision in OIA or appeal by the Department before the First Appellate Authority or Tribunal, if any additional tax determined- Taxpayer has to pay tax Within 6 months of order u/s 73

4. How to pay tax- Taxpayer has to pay tax either through e-cash ledger or e-credit ledger but in case of RCM – only through e-cash ledger.

5. What about if interest and penalty also paid along with tax– No refund will be paid of interest and penalty already paid.

6. As this scheme applicable from 1st nov 2024 so what if tax paid before 01.11.2024– Taxpayer allowed the benefits of the scheme.

7. What will be done in case there were multiple issues – Tax has to be paid for all issues.

8. What will be done in case demand is related to specified period and other non-specified period- Taxpayer has to pay tax for all periods and interest & penalty for non-specified periods only with in 30 days of Amnesty order.

9. What will be done once taxpayer opted for this scheme- No further appeal can be filed by taxpayer once opted for this scheme and proceedings are concluded.

10. Now let us discuss procedure to availing benefits under this scheme– As discussed above various clauses under which payment need to be done by 31^st st March or with in 6 months of redetermination of order u/s 73 file followings forms –

• GST SPL-1 – Section 128A(1)(a) – with in 3 months from 31.03.2025
• GST SPL -2 – Section 128A(1)(b) – with in 3 months from 31.03.2025
• Submit the copy of withdrawl of appeal on common portal
• GST SPL -3 – Notice can be issued in case any clarification required with in 3 months of SPL-1 /SPL-2
• GST SPL-4- Reply need to be filed with in one month of Notice received.
• GST SPL-5 – Favourable waiver order passed with in 3 months of SPL-04 and in case no reply filed with in 4 months of SPL-03 and in case no notice issued then also wuth in 3 months of SPL-01/02.
• GST SPL 6- Amensty appeal filed and favourable order thereafter.
• GST SPL 7- Adverse order rejecting the waiver application SPL-01/2
• GST SPL 8 – In case of rejection of application the original appeal will be reinstated as if no amensty scheme will be filed later on.

That’s all for today- Any doubts related to above mailed at [email protected]