Summary: The GST Amnesty Scheme 2024, effective from November 1, 2024, provides relief from interest and penalties on tax demands for FY 2017-18, 2018-19, and 2019-20. Taxpayers must pay the full tax amount by March 31, 2025, following specified procedures. Applications must be submitted using Forms SPL-01 or SPL-02 within three months of the notified date, with payments through Form DRC-03 or the electronic liability register. Retrospective amendments in Sections 16(5) and 16(6) of the CGST Act allow extended periods for claiming Input Tax Credit (ITC) from July 1, 2017, but no refunds are permitted for tax paid or ITC reversed under these provisions. A new Form GST DRC-03A, introduced on November 5, 2024, addresses incorrect payments made via Form DRC-03. Taxpayers can use this form to link payments to demand orders if the payment was marked as ‘Voluntary’ or ‘Others.’ However, errors in categorizing payments may lead to ineligibility for amnesty benefits, and unlinked payments could leave demands open in the electronic liability register. Taxpayers must ensure compliance with procedures, and those facing issues are advised to contact the GST helpdesk or raise tickets on the Grievance Redressal Portal under the category ‘DRC-03A-Filing.’ Proper categorization and adherence to procedures are essential to benefit from the scheme and ensure regulatory compliance.
The GST Amnesty Scheme, effective from November 1, 2024, introduces significant relief measures for taxpayers concerning interest and penalties on tax demands under Section 73 of the CGST Act for the financial years 2017-18, 2018-19, and 2019-20. To avail of this scheme, taxpayers must pay the full tax amount by March 31, 2025. The procedural aspects are detailed in Rule 164, which requires the submission of applications using Forms SPL-01 or SPL-02 within three months from the notified date. Tax payments should be made through Form DRC-03 or the electronic liability register.
Additionally, Sections 16(5) and 16(6) of the CGST Act have been introduced to override the provisions and time limits specified in Section 16(4), allowing for extended periods to claim Input Tax Credit (ITC) retrospectively from July 1, 2017. However, as per Section 150 of the Finance (No. 2) Act, 2024, no refunds will be issued for any tax paid or ITC reversed under these provisions.
For detailed guidance on implementing these provisions, refer to GST Circular No. 237/31/2024, issued on October 15, 2024. This circular provides clarity on handling past ITC claims and outlines the procedure for rectifying discrepancies arising from non-compliance with Section 16(4). Taxpayers are advised to review this circular to understand the steps required to benefit from the retrospective amendments and ensure compliance with the updated regulations.
The GST Amnesty Scheme, effective from November 1, 2024, under Section 128A of the CGST Act, 2017, offers a waiver of interest and penalties on tax demands for FY 2017-18, 2018-19, and 2019-20, provided the full tax payment is made by March 31, 2025. To benefit from this scheme, taxpayers must adhere to specific payment procedures:
For notices under Section 128A(1): Payments should be made using Form DRC-03.
For notices under Sections 128A(2) and 128A(3): Payments must be made against a debit entry created in Part II of the Electronic Liability Register. If a payment was erroneously made through Form DRC-03, taxpayers are required to file Form DRC-03A to adjust this payment appropriately.
The GSTN issued an advisory on November 5, 2024, introducing Form GST DRC-03A to address situations where taxpayers paid demands via Form DRC-03 instead of the ‘Payment towards demand’ facility on the GST portal. This form allows taxpayers to link payments made through DRC-03 to the corresponding demand order, ensuring the demand is accurately reflected as settled in the electronic liability register. However, only DRC-03 forms where the cause of payment was selected as ‘Voluntary’ or ‘Others’ are eligible for adjustment using Form DRC-03A.
If a taxpayer has received an order and made a payment using Form DRC-03 but selected a cause of payment other than ‘Voluntary’ or ‘Others’, they will be unable to file Form DRC-03A. In such cases, the payment cannot be linked to the corresponding demand order through the prescribed mechanism, potentially leading to the demand remaining open in the electronic liability register.
Regarding eligibility for the amnesty under Section 128A, the scheme requires that payments be made following the specified procedures. Non-compliance with these procedures, such as incorrect payment categorization, may result in ineligibility for the amnesty benefits. Therefore, it is crucial for taxpayers to ensure that payments are made correctly and, if errors occur, to seek rectification promptly.
Taxpayers facing this issue are advised to contact the GST helpdesk or raise a ticket under the category ‘DRC-03A-Filing’ on the Grievance Redressal Portal to seek guidance on possible rectification measures.
Ensuring accurate payment categorization and adherence to the prescribed procedures is essential for availing benefits under the GST Amnesty Scheme and for maintaining compliance with GST regulations.
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