Important Update on GST Amnesty Scheme: Taxpayers Must Withdraw Appeals Before Applying for Penalty and Interest Waiver

GST Amnesty Scheme 2024 under Section 128A, announced in the 2024 Budget, has created significant buzz among GST-registered taxpayers. This scheme offers a valuable opportunity for taxpayers to get a one-time waiver of penalties and interest on certain types of GST disputes. However, there’s an important update you need to be aware of before applying.

In a key procedural change, taxpayers who wish to benefit from the GST Amnesty Scheme must first withdraw any appeals they’ve filed against relevant GST notices before submitting their application. This requirement specifically applies to taxpayers who filed appeals before March 21, 2023, and the appeal option is not available online for these cases.

This means that if you’ve contested any GST demand orders, notices, or statements with an appeal using the GST APL 01 form prior to March 21, 2023, you will need to submit a withdrawal request to the concerned appellate authority before applying for the GST Amnesty Scheme. While the online withdrawal process is available for more recent appeals, older cases require direct interaction with the appellate authority.

Let’s take a closer look at this process and how it might affect you.

Who Needs to Withdraw Their Appeal Before Applying for the GST Amnesty Scheme?

Taxpayers who filed appeals before March 21, 2023, and still have unresolved cases, need to request withdrawal of their appeal directly from the appellate authority. This is a crucial step to qualify for the GST Amnesty Scheme under Section 128A, which offers a waiver on interest and penalties.

While the option to withdraw the appeal online is available for more recent filings, those who filed their appeals before March 21, 2023, will not see this option in their GST portal. In these cases, taxpayers must send a formal request to the concerned Appellate Authority to withdraw the appeal. The authority will then forward the request to GSTN through the State Nodal Officer to process the withdrawal.

It’s essential that taxpayers meet this condition to avoid any delays in the processing of their GST Amnesty Scheme application. If you’re unsure about the specific steps or need help with the process, our team at SS Auditors and Tax Consultants specializes in GST registration, GST return filing, and Audit services to help ensure that your business is compliant and able to take advantage of such schemes. We can guide you through the appeal withdrawal process and assist you in applying for the waiver.

An Overview of the GST Amnesty Scheme Under Section 128A

To fully understand the implications of this update, let’s first revisit what the GST Amnesty Scheme entails. The scheme offers a one-time waiver of interest and penalties for specific GST-related disputes under Section 73 of the CGST Act. However, the amnesty applies only to cases that are non-fraudulent in nature. If your dispute involves a clerical error, delays in filing returns, short payment of tax, or an excess claim of input tax credit, you could be eligible to apply for the waiver under this scheme.

It’s important to note that the scheme does not cover cases related to fraudulent activities, such as the wrong claiming of refunds or cases under Section 74, which deals with fraud, willful misrepresentation, or suppression of facts.

If you are unsure whether your case qualifies, our team at SS Auditors and Tax Consultants can help you determine your eligibility and guide you through the application process. From GST registration to GST invoicing, we provide a range of services to assist businesses in navigating the complexities of GST compliance and ensuring that your application is submitted smoothly.

The Deadline for Applying for the GST Amnesty Scheme

Time is of the essence if you want to take advantage of the GST Amnesty Scheme. According to the department's circulars, the final date for submitting applications and paying the disputed tax is March 31, 2025. So, if you want to get rid of penalties and interest under this scheme, be sure to complete your application and make the required payments by this deadline.

To apply, taxpayers need to withdraw their pending appeal, use forms GST SPL-01 and SPL-02 (available on the GST portal), and pay 100% of the demanded tax before the deadline. Our team can help with everything from Income tax valuation to GST notice handling to make sure your application meets the deadline without hassle.

Which GST Notices Qualify for the Amnesty Scheme?

Not all GST notices are eligible for this amnesty. Only notices related to non-fraudulent issues like clerical errors, delays in filing returns, and short tax payments are eligible. Additionally, the scheme only applies to notices issued between July 1, 2017, and March 31, 2020. If your GST disputes stem from these issues, there’s a good chance you qualify for the waiver.

On the other hand, fraud-related cases, such as those under Section 74, involving misrepresentation or suppression of facts, are not eligible for the amnesty.

We Can Help You Navigate the GST Amnesty Scheme

Navigating the procedural requirements of the GST Amnesty Scheme can be challenging, but you don’t have to go it alone. Whether you're seeking GST return filing, assistance with GST audits, or need help withdrawing an appeal, our experts are here to guide you every step of the way.

Additionally, if you're thinking of expanding your business or starting a new venture, we can assist with Company registration, MSME registration, and other compliance needs. Our team is here to help ensure your business stays compliant with GST, tax regulations, and other legal frameworks.

With the GST Amnesty Scheme offering significant relief, now is the time to act. Get in touch with us today to ensure you're on track for a smooth and successful application process.

We hope this guide clarifies the important update on the GST Amnesty Scheme and the withdrawal process. If you need assistance with any part of the application process or have any questions regarding your eligibility, don’t hesitate to reach out to our expert team at SS Auditors and Tax Consultants. We're here to help!