The Indian government has introduced a taxpayer-friendly GST Amnesty Scheme under Section 128A of the CGST Act, 2017, effective from November 1, 2024. This initiative aims to reduce litigation and provide relief to businesses by waiving interest and penalties for specific disputes. Here’s a detailed breakdown of the scheme, eligibility criteria, and steps to avail its benefits.
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Key Features of GST Amnesty Scheme
1. Waiver of Interest and Penalties:
– Applies to tax demands under Section 73 (non-fraud cases) for FY 2017-18 to 2019-20.
– Full tax payment by March 31, 2025, is mandatory to qualify for the waiver.
2. ITC Availment Relief:
– Taxpayers can claim Input Tax Credit (ITC) for invoices/debit notes up to November 30, 2021, for FY 2017-18 to 2020-21.
3. Late Fee Waiver for GSTR-9C:
– Late fees for delayed filing of GSTR-9C (annual reconciliation statements) for FY 2017-18 to 2022-23 will be waived if filed by March 31, 2025.
Who is Eligible for GST Amnesty Scheme?
The scheme covers:
– Tax demands raised through notices (Section 73(1)) or statements (Section 73(3)).
– Pending appeals at any stage (adjudication, appellate authority, tribunal, or courts).
– Cases where fraud is NOT involved (Section 74 demands converted to Section 73 post-appeal).
Exclusions:
– Late fee/penalty for delayed returns (Section 47).
– Recovery of self-assessed tax (Section 75(12)).
– Erroneous refund cases.
– Appeals not withdrawn before applying.
How to Apply for GST Amnesty Scheme?
Step 1: Pay the Tax Dues
– Settle the full tax amount (no partial payments) by March 31, 2025. Use Form GST DRC-03 (voluntary payment) or adjust via the GST portal.
Step 2: Submit Application
– Form GST SPL-01: For notices/statements where no order is issued.
– Form GST SPL-02: For orders involving multiple periods or erroneous refunds.
– Applications must be filed by June 30, 2025 (3 months post-deadline).
Step 3: Withdraw Appeals
– Pending appeals/writs must be withdrawn before applying. Submit withdrawal proof with your application.
Step 4: Department’s Action
– Officers will verify applications and may request clarifications via Form GST SPL-03.
– Approval results in Form GST SPL-04 (closure of proceedings). Rejections are communicated via Form GST SPL-05.
Special Provisions for ITC Rectification
– Section 16(4) Issues: Rectify orders denying ITC due to procedural lapses (e.g., delayed filings) by submitting Annexure-A via the GST portal by April 7, 2025.
– No Refunds: Taxes already paid under Section 16(4) cannot be reclaimed even if ITC becomes eligible later.
Late Fee Waiver for GSTR-9C
Businesses with turnovers above ₹2.5 Cr (FY 2017-20) or ₹5 Cr (FY 2020-23) must file GSTR-9C by March 31, 2025, to avoid penalties.
Important Deadlines
| Action | Deadline |
| Full tax payment | March 31, 2025 |
| GSTR-9C filing | March 31, 2025 |
| Rectification under Section 16(4) | April 7, 2025 |
| Amnesty application (SPL-01/SPL-02) | June 30, 2025 |
Why Avail GST Amnesty Scheme?
– Litigation Relief: Resolve disputes and close pending appeals.
– Cost Savings: Eliminate hefty interest and penalties.
– Simplified Compliance: Streamlined process via the GST portal.
Final Note: This scheme is a golden opportunity for businesses to resolve legacy disputes and start FY 2025-26 on a clean slate. Ensure timely action to avoid missing critical deadlines!
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Disclaimer: This article is for informational purposes only. Taxpayers are advised to consult legal experts or refer to official notifications for case-specific guidance.
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