New GST Amnesty Scheme Notified: Waiver of Interest and Penalty on GST Tax Demand for Eligible Taxpayers to Be Effective from November 1, 2024

By: Admin
October 11, 2024
Categories: GST Recent News
4 Min Read

The Ministry of Finance has released new rules for taxpayers looking to apply for the ‘conditional waiver of interest and penalty’ scheme, which was announced in the 2024 Budget. This scheme, effective from November 1, 2024, offers relief for non-fraudulent GST demand notices for the fiscal years 2017-18 to 2019-20 under Section 73.

Eligibility and Process

Under Section 128A, this amnesty scheme waives all penalties and interest but requires taxpayers to pay the principal tax amount. The deadline for payment is March 31, 2025, with form submissions due by June 30, 2025.

A tax expert explained that Section 128A is designed to provide relief to those facing non-fraudulent GST assessments for these fiscal years. Despite its compliance-heavy nature, the scheme aims to resolve disputes efficiently.

Step-by-Step Application Process

  1. Electronic Submission: Eligible taxpayers must file Form GST SPL-01 to waive interest and penalties, along with Form GST DRC-03 for tax payments.
  2. Form GST SPL-02: Those dealing with orders under Section 128A must submit this form, ensuring full payment of tax.
  3. Payment and Compliance: All tax payments must be completed before submitting forms, and proofs of appeal withdrawal should be attached if applicable.
  4. Review and Decision: Applications will be reviewed by an officer, who will approve or reject the waiver using Form GST SPL-05.

This amnesty scheme offers a major relief to taxpayers who were overburdened by GST demands during the initial years. Eligible taxpayers should act promptly to benefit from the waiver.

For further assistance, contact a tax advisor.

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Source: ET

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