The GST Council’s 53rd meeting on June 22, 2024, introduced a waiver scheme for taxpayers to reduce disputes by waiving interest and penalties on demands or orders under Section 73 of the CGST Act, 2017. This applies to the financial years 2017-18, 2018-19, and 2019-20, excluding cases involving fraud or willful misstatements. To avail of the waiver, taxpayers must pay the full tax amount by March 31, 2025. Rule 164 of CGST rules, notified through Notification No. 20/2024 on October 8, 2024, outlines the procedural guidelines for this waiver scheme. Taxpayers are required to file applications in Form GST SPL-01 or GST SPL-02 on the common portal by the deadline of March 31, 2025. These forms will be available by the first week of January 2025. In the interim, taxpayers should ensure payment of the demanded tax using the “payment towards demand” facility or Form GST DRC-03. If payment is already made using Form GST DRC-03, taxpayers must link it with the demand order through Form GST DRC-03A, available on the portal.
Goods and Services Tax
Government of India, States and Union Territories
ADVISORY FOR WAIVER SCHEME UNDER SECTION 128A
Nov 8th, 2024
For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025.
In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated. 8th October 2024, effective from 1st November 2024. This rule provides procedural guidelines for the said waiver scheme. As per the waiver scheme, if a notice or order is issued under Section 73 for the financial years 2017-18, 2018-19 and 2019-20, the taxpayers are required to file an application in FORM GST SPL-01 or FORM GST SPL-02, respectively on the common portal within three months from notified date, which is 31.03.2025.
In this regard it is to inform that Form GST SPL-01 and Form GST SPL-02 are under development and same will be made available on the common portal tentatively from the first week of January 2025. In the meantime, taxpayers are advised to pay the tax amount demanded in the notice, statement, or order issued under Section 73 on or before March 31st, 2025, to ensure that they receive the waiver benefits by paying their taxes before the deadline.
Taxpayer can pay the demanded tax amount through the “payment towards demand” facility in case of demand orders and through Form GST DRC-03 in case of notices. However, if payment has already been done through Form GST DRC-03 for any demand order then taxpayer need to link the said Form GST DRC 03 with such demand order through Form GST DRC-03A, which is now available on the common portal.
Thanking You,
Team GSTN
