Summary of GST Appeal Amnesty Scheme

The CBIC has given a great relief to the taxpayers who could not file an appeal against the orders, passed on or before 31^st March 2023 under Section 73 or 74 of the CGST Act (hereinafter referred to as the said order), within the time period stipulated under sub-section (1) read with sub-section (4) of Section 107 of CGST Act, 2017. The government has notified an Amnesty Scheme, vide Notification No. 53/2023–Central Tax dated 2^nd November, 2023, extending time limit up to 31^st January, 2024 for filing an appeal against the said orders, subject to curtained conditions specified therein.

Appeal under section 107

An appeal against the orders passed under Section 73 or Section 74 of the CGST Act, may be filed under Section 107 ibid which provides that any person aggrieved by any adjudication order passed under the GST Acts may appeal within three months from the date of communication of said orders. 

Condonation of delay for a Month

Section 107(4) provides that the Appellate Authority may allow a further period of one month, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months.

However, in terms of Section 107(4), the Appellate Authority had discretionary power to allow one more month to the taxpayers for filing such appeals.

Summary of Appeal Amnesty Scheme (Notification No. 53/2023–Central Tax dated 2^nd November, 2023):

1. Eligibility for Amnesty Scheme:

• The taxable person who could not file an appeal against the order passed on or before 31^st March 2023.
• The taxable person who had filed an appeal beyond the time limit as provided under Section 107(4) of CGST Act, 2017, and the same was rejected on the grounds of time barred.

2. Pre-requisite for availing Amnesty Scheme:

• The amount of admitted dues as per order must have been fully paid.
• Pre-deposit: Minimum 12.5% of Disputed tax out of which 20% should be mandatorily paid through Electronic Cash Ledger.

3. Non-Applicability of Amnesty Scheme:

• Any order passed on or before 1^st April 2023.
• An order not involving tax demand. In other words, Orders containing only interest/penalty demand, Refund rejection order etc. are not eligible.

Conclusion: The GST Appeal Amnesty Scheme, introduced via Notification No. 53/2023–Central Tax, acts as a lifeline for taxpayers facing challenges in filing appeals within stipulated timelines. Eligible individuals can leverage this scheme by fulfilling the specified criteria, providing an opportunity to address tax-related issues and move towards a more compliant and secure financial future. It’s imperative for taxpayers to grasp the nuances of the scheme, ensuring they meet the eligibility criteria and adhere to the prerequisites for a smooth and successful resolution of their appeals.