Section 128A of the Central Goods and Services Tax (CGST) Act introduces an amnesty scheme aimed at resolving pending GST disputes by waiving interest and penalties for specific tax periods, provided certain conditions are met. To avail of this waiver, taxpayers must utilize the prescribed forms: SPL-01 and SPL-02.
Overview of Section 128A
Section 128A provides taxpayers with an opportunity to settle outstanding GST liabilities by waiving interest and penalties associated with tax demands raised under Section 73 of the CGST Act for the periods between July 1, 2017, and March 31, 2020. This waiver is applicable only in cases that do not involve fraud, willful misstatement, or suppression of facts. To benefit from this provision, taxpayers are required to pay the full amount of tax due by March 31, 2025.
Eligibility Criteria
Taxpayers eligible to apply for the waiver under Section 128A include:
1. Individuals who have received a notice under Section 73(1) or a statement under Section 73(3) for the specified period and where no final order has been issued under Section 73(9).
2. Individuals who have received an order under Section 73(9) and have filed an appeal, but no order has been passed under Section 107(11) or 108(1).
3. Individuals who have received an order under Section 107(11) or 108(1) and have filed a second appeal, but no order has been passed under Section 113(1).
4. Cases where a notice was initially issued under Section 74(1), but an order is subsequently passed or required to be passed under Section 73, following directions from appellate authorities or courts in accordance with Section 75(2).
Exclusions
The waiver does not apply to amounts payable due to erroneous refunds or cases where an appeal or writ petition filed by the taxpayer is pending and has not been withdrawn by the specified date.
Forms SPL-01 and SPL-02
To apply for the waiver, taxpayers must submit the appropriate form based on their specific situation:
- Form SPL-01: For taxpayers who have received a notice under Section 73(1) or a statement under Section 73(3) and where no final order has been issued under Section 73(9).
- Form SPL-02: For taxpayers who have received an order under Section 73(9) or subsequent appellate orders and seek a waiver of interest or penalties.
Filing Process
1. Access the GST Portal: Log in to the GST portal and navigate to ‘Services’ > ‘User Services’ > ‘My Applications’.
2. Select Application Type: Choose ‘Apply for Waiver Scheme under Section 128A’ from the ‘Application Type’ dropdown menu.
3. Initiate New Application: Click on ‘New Application’ to begin the process.
4. Choose the Appropriate Form: Select either SPL-01 or SPL-02 based on your eligibility and click ‘CREATE APPLICATION’.
5. Complete the Questionnaire: Answer the mandatory questions presented in the questionnaire.
6. Fill in Application Details: Provide the necessary details in the form, including basic information and specifics of the demand order.
7. Upload Supporting Documents: Attach all required supporting documents, ensuring each file does not exceed 5 MB, with a maximum of five documents.
8. Submit the Application: After reviewing the application, submit it using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Upon successful submission, an Application Reference Number (ARN) will be generated.
Important Deadlines
- Payment of Tax Dues: Taxpayers must pay the full amount of tax due by March 31, 2025, to qualify for the waiver.
- Submission of Waiver Application: The completed application form (SPL-01 or SPL-02) must be submitted by June 30, 2025.
Conclusion
Section 128A of the CGST Act provides a significant opportunity for taxpayers to resolve outstanding GST disputes by waiving interest and penalties for specified periods, contingent upon the payment of the full tax amount due and compliance with the prescribed procedures. Timely submission of the appropriate forms, SPL-01 or SPL-02, is crucial to benefit from this waiver. Taxpayers are advised to adhere to the specified deadlines and ensure accurate completion of the application process to facilitate a smooth resolution of their tax liabilities.
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