GST Amnesty Schemes
CA Navin Singhal
CA Navin Singhal is a versatile professional with diverse experience in various fields, including:
– Valuation expertise in Insolvency and Bankruptcy cases as a junior valuer
– Statutory audit of listed and unlisted companies
– Stock and receivable audit
– Leadership role in internal audit teams
– GST audit for individuals and companies
His broad range of experience has equipped him with a unique understanding of various aspects of accounting, auditing, and valuation.”
Introduction:
The GST Amnesty Scheme, effective November 1, 2024, offers businesses a chance to settle outstanding tax dues under Section 73 without facing hefty interest and penalties. This scheme, outlined under Section 128A of the CGST Act and Rule 164, aims to ease compliance and encourage regular tax payments. To benefit, taxpayers must submit the required forms and clear all dues before the deadline.
Latest Highlights:
On May 14, 2025, GSTN clarified the process to withdraw appeals related to the GST Amnesty Scheme under Section 128A, which requires the Appellate Authority not to keep an appeal pending.
1. Automatic Withdrawal Before Final Acknowledgment (APL-02): The system will automatically withdraw the first Appeal Application (APL-01) if a taxpayer files a Withdrawal Application (APL-01W) prior to the Appellate Authority issuing the Final Acknowledgment (APL-02). In this instance, the appeal’s status will automatically change from “Appeal submitted” to “Appeal withdrawn.”
2. Withdrawal Upon Final Acknowledgment: The appeal shall only be withdrawn following Appellate Authority clearance if the Withdrawal Application is filed after APL-02 is issued. The appeal’s status will likewise change to “Appeal withdrawn” if it is accepted.
3. Requirement Under GST Waiver Scheme (Section 128A): There must be no current appeals against the demand order to get benefits under the amnesty scheme. The criteria are deemed satisfied in both situations if the status changes to “Appeal withdrawn.”
4. Document Requirement When Filing a Waiver Application: Taxpayers must upload a screenshot of the appeal case folder that clearly shows the status “Appeal withdrawn,” whether during or after filing the waiver application.
Key Points of Section 128A – GST Amnesty Scheme:
- The GST Amnesty Scheme is valid for the fiscal years 2017-18 to 2019-20. It applies to non-fraudulent instances assessed under Section 73.
- It waives Section 50 interest and/or penalties.
- To qualify for the amnesty, the tax amount owed must be paid before the set date of March 31, 2025.
- Applications for waivers must be submitted by June 30, 2025.
- No refunds will be issued if interest or penalties have already been paid.
- Multiple notices, statements, and orders must be filed through distinct applications.
- The waiver does not apply if an appeal or writ petition is underway and not withdrawn.
- If any amount is owed due to an incorrect refund, the scheme is not applicable.
- The decision cannot be appealed further.
- Forms must be filed correctly and submitted on time to prevent rejection and ensure waiver approval.
Forms Under the GST Amnesty Scheme:
The various types of forms involved in the Amnesty Scheme GST 2025, detailed in Section 128A of the CGST Act, are listed below:
- GST SPL 01: Used to request a waiver for notices or statements. Ensure that you submit the documentation listed in Table 7 of the form.
- GST SPL 02: Used for waiver petitions after a demand order or order in appeal is issued.
- GST SPL 03: Used to issue a Show Cause Notice to the Applicant. It states the reasons for issuing the Notice, lists any short tax payments, and includes the date and time of a personal hearing.
- GST SPL 04: Used to respond to the Show Cause Notice. Applicants must respond within one month, along with supporting papers such as tax payment evidence.
- GST SPL 05: Issued to wrap up proceedings if the application or reply is approved or allowed. Specific timelines for issuing the order are specified based on whether a response is received.
- GST SPL 07: Issued for the rejection of an application. It addresses factors such as incomplete payments, late payments, and improper disclosures. The order may be appealed, and any earlier appeals withdrawn for the application may be reinstated if no new appeal is filed.
- GST SPL 06: Issued when an appellate body allows an appeal that was initially rejected.
- GST SPL 08 is issued when an appellate body rejects an appeal.
Eligibility Criteria:
To be eligible for the GST 2025 amnesty plan, taxpayers must have been evaluated under Section 73 (non-fraudulent cases) and received GST demand notices for the fiscal years 2017-18 through 2019-20. It applies to interest and penalties incurred between July 1, 2017, and March 31, 2020, but does not apply to taxpayers implicated in fraudulent cases under Section 74.
Deadline for the GST Amnesty Scheme:
As previously stated, the GST 2025 amnesty scheme allows taxpayers to pay any outstanding balances by March 31, 2025. Furthermore, the required forms must be submitted before June 30, 2025.
An overview of the process – Amnesty Scheme for GST:
- Tax Payment and Initial Filing: Submit the relevant GST SPL-01 or GST SPL-02 form after paying the tax.
- Response Timeline: The application is deemed approved if no response is obtained within three months. Additional actions are taken if a response is obtained within three months.
- Show Cause Notice: Should it be necessary, the applicant will get a Show Cause Notice (GST SPL-03).
- Response Submission: Within a month after receiving SPL-03, respond to the notice using GST SPL-04.
- Assessment of Response: GST SPL-05 will be issued if the response is deemed satisfactory. If the response is not satisfactory, an Order of Rejection (GST SPL-07) would be issued.
- Appeal Procedure: The applicant may challenge the order if it is denied.
- Final Approval or Rejection: GST SPL-06 will be issued if the appeal is successful. The application will be denied and noted in GST SPL-08 if it is unsuccessful.
Conclusion:
Section 128A of the GST Amnesty Scheme 2024 offers taxpayers a great chance to regularize their GST compliance by avoiding fines and interest on past-due returns. The plan encourages businesses to pay outstanding debts, re-register cancelled GST accounts, and ensure smoother compliance by offering financial relief, streamlined procedures, and extended deadlines. This GST amnesty program enhances the overall efficiency of the tax administration system while assisting taxpayers in clearing compliance backlogs.
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