Deadline for GST amnesty payment nears, recent circular & notification offers relief to taxpayers: With the deadline drawing near for the Goods and Services Tax (GST) amnesty scheme, introduced under Section 128A of the CGST Act, the Central Board of Indirect Taxes and Customs (CBIC) has moved to provide further clarity and ease the process for taxpayers seeking to benefit from this relief measure. Recognizing potential ambiguities and procedural hurdles, the CBIC issued Circular No. 248/05/2025 -GST and NNotification No. 11/2025 – Central Tax, both dated March 27, 2025. 2 These pronouncements specifically address concerns regarding the eligibility for the amnesty scheme, particularly concerning tax payments made through Form GSTR-3B before the scheme’s formal commencement. 3 Furthermore, they outline revised procedures for handling demand notices or orders that encompass periods both within and outside the stipulated amnesty timeframe of July 1, 2017, to March 31, 2020. These recent interventions by the CBIC aim to ensure wider participation in the amnesty scheme by clarifying crucial aspects related to payment methods and appeal processes for taxpayers facing outstanding demands under Section 73 of the CGST Act.
A. CBIC vide Circular No. 248/05/2025 -GST dated 27th March 2025 has clarified the following issues:
1. Whether the cases where tax has been paid through return in Form GSTR-3B instead of through Form GST DRC-03, prior to 1 November 2024 i.e. introduction of Section 128A, would be eligible for the benefit under amnesty scheme:
In order to clarify the above, reference has been made to circular no. 238/32/2024 dated 15th October 2024. It was clarified that any amount paid prior to 1st November 2024 shall be considered as payment made towards the tax payable towards the demand raised under Section 73 of CGST Act.
Also, a reference is made to Rule 164(2) of CGST Rules, which provides for procedure in to be followed for cases where payment has already been made through Form GST DRC-03.
In light of the above background, it is clarified that where the payment of tax has been made through Form GSTR-3B prior to the issuance of demand notice and/or adjudication order before the date 1 November 2024, shall also be eligible for benefit under section 128A of the CGST Act, subject to verification by the proper officer.
2. Whether (i) the entire amount of tax demanded is required to be discharged and (ii) the appeal is required to be withdrawn for the entire period, where notices/statements/orders issued to taxpayers, pertains to period covered partially under section 128A and partially outside it.
In light of the amendment made in Rule 164(4) and proviso inserted in Rule 164(7) of CGST Rules, in case where tax has been discharged for the period covered under amnesty scheme, application can be filed in Form SPL-01 or Form SPL-02. Also, an intimation can be filed stating that the taxpayer does not intend to peruse appeal for the period covered under amnesty scheme.
Additionally, it is clarified that point 6 of the table at para 4 of the circular no. 238/32/2024 -GST dated 15 October 2024 dealing with payment of tax for the period including the period not covered under the amnesty scheme, has been withdrawn.
B. CBIC vide Notification No. 11/2025 – Central Tax dated 27th March 2025 has amended the following Rule under CGST Rules, 2017:
Rule 164: Procedure and conditions for closure of proceedings under section 128A in respect to of demand issued under section 73 of CGST Act
- First amendment pertains to Sub-rule (4) of Rule 164 of CGST Rules. The same is in light of the condition for payment of taxes for the period not covered under the amnesty scheme. Pursuant to said amendment, the payment of tax is to be paid in full only for the period covered under amnesty scheme. Hence, in cases where the SCN/Order covers the period beyond FY 2019-20, the tax is to be paid only for the period until FY 2019-20.
- Further, the explanation inserted below sub-rule (4) provides that in case where tax, interest and penalty for the period beyond FY 2019-20 has been paid, prior to issuance of captioned notification, the same shall not be refunded.
- Second amendment pertains to Sub-rule (7) of Rule 164 of CGST Rules. Vide said amendment, 2nd Proviso along with an explanation has been inserted in the Sub-rule (7). In light of said amendment, where the SCN/Order includes the period for which amnesty benefit is not available, applicant instead of withdrawing the appeal shall intimate that he do not wish to peruse the appeal for the period covered under amnesty scheme. Accordingly, the officer can pass an Order for the period other than the period covered under amnesty.
- The appeal shall be deemed to be withdrawn, to the extent of said intimation, for the period from the 1 July 2017 to the 31 March 2020 or part thereof, for the purpose of sub-clause (3) of section 128A.
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Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.
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