On October 8, 2024, the Government of India issued two key notifications No.21/2024 & No.20/2024 introducing an Amnesty Scheme for GST taxpayers, based on Section 128A of the Central Goods and Services Tax (CGST) Act, 2017. The scheme offers relief by waiving interest and penalties for specific tax demands raised under Section 73 of the CGST Act, for the period between July 1, 2017, and March 31, 2020. This scheme aims to reduce litigation and compliance burdens on taxpayers, while simultaneously encouraging settlement of past dues.
Section 128A: Overview and Key Provisions
Section 128A provides for the waiver of interest or penalty, or both, for tax periods between July 1, 2017, and March 31, 2020, under the following conditions:
- Clause (a): Applies to taxpayers who received a notice (DRC-01) or statement under Section 73(1) or Section 73(3), but no final order has been passed under Section 73(9).
- Clause (b): Applies to taxpayers for whom a final order has been passed under Section 73(9) DRC-07, but no appeal or revision order has been issued under Section 107(11), Section 108(1), or Section 113(1).
- Clause (c): Applies to taxpayers for whom an order (APL-04) has been passed under Section 107(11) or Section 108(1), but no further appeal under Section 113(1) has been filed.
Waiver Conditions:
- Taxpayers can settle the full tax amount for the period mentioned and will not be required to pay interest or penalties.
- The amnesty will only apply if the tax is paid before 31.03.2025
Key Notifications Issued on October 8, 2024
1. Notification No. 21/2024 – Central Tax
Subject: Timeline for Payment of Tax under Section 128A
This notification specifies the timeline by which taxpayers must pay the outstanding tax to avail of the waiver of interest and penalties.
Table for Timeline:
| Sl. No. | Class of Registered Person | Date up to which payment must be made |
|---|---|---|
| 1 | Taxpayers issued notices, statements, or orders under Section 128A | March 31, 2025 |
| 2 | Taxpayers issued notices under Section 74 but deemed as issued under Section 73 for tax redetermination | Date ending on the completion of six months from the issuance of redetermination order |
The notification gives taxpayers until March 31, 2025, to pay outstanding taxes, or six months from the issuance of the order for those whose tax is redetermined under Section 73.
2. Notification No. 20/2024 – Central Tax
Subject: Procedure for Waiver of Interest and Penalty under Section 128A
This notification outlines the procedure and conditions for availing of the waiver of interest and penalties under the amnesty scheme. A new rule, Rule 164, is inserted in the CGST Rules, 2017 to govern this process.
SPL forms introduced for the GST Amnesty Scheme 2024 under Section 128A:
| Form Name | Purpose | Applicable For | Key Requirements | Time Limit |
|---|---|---|---|---|
| Form GST SPL-01 | Application for waiver of interest/penalty for notices or statements under Section 73 | Taxpayers eligible under Clause (a) of Section 128A (notices/statements issued but no final order passed) | Provide details of notice/statement and payment made via Form GST DRC-03 | Must be filed within 3 months from the date notified under Section 128A. |
| Form GST SPL-02 | Application for waiver of interest/penalty for final orders under Section 73, 107, or 108 | Taxpayers eligible under Clauses (b) & (c) of Section 128A (final orders passed, but no further appeal) | Provide details of the order and payment made. Must file Form GST DRC-03A for payment credits before filing SPL-02 | Must be filed within 6 months from the date of the redetermination order. |
| Form GST SPL-03 | Notice issued by the proper officer if the waiver application is deemed ineligible | Issued by the proper officer when the application for waiver is found ineligible | Proper officer issues this to inform taxpayers of potential rejection. Taxpayer has one month to respond with Form GST SPL-04 | Issued within 3 months from receipt of Form GST SPL-01 or Form GST SPL-02 by the taxpayer. |
| Form GST SPL-04 | Reply to the notice issued under Form GST SPL-03 | Taxpayers who receive Form GST SPL-03 | Taxpayer provides justification or further information to support the waiver application | Taxpayer must reply within 1 month from the date of receipt of Form GST SPL-03. |
| Form GST SPL-05 | Acceptance of the waiver application by the proper officer | Issued when the waiver application is approved | Confirms waiver of interest/penalty and closure of proceedings under Section 128A | Issued within 3 months from the receipt of waiver application (if no notice is issued under SPL-03). |
| Form GST SPL-06 | Acceptance of waiver by appellate authority in case of successful appeal against rejection | Issued when the appellate authority finds that the waiver application was wrongly rejected by the proper officer | Confirms waiver of interest/penalty and closure of proceedings under Section 128A | Issued upon successful appeal after rejection of waiver. No specific time limit mentioned. |
| Form GST SPL-07 | Rejection of the waiver application by the proper officer | Issued when the waiver application is rejected by the proper officer | Confirms rejection of the waiver application and continuation of the original tax demand | Issued within 3 months from the date of receipt of taxpayer’s reply or within 4 months if no reply is received. |
| Form GST SPL-08 | Undertaking filed by the taxpayer when an appeal is restored | Filed when an appeal is restored following rejection of the waiver application | Confirms that no further appeals will be filed, enabling restoration of the original appeal | Must be filed within 3 months from the date of issuance of appellate authority’s order (FORM GST APL-04). |
Key Provisions of Rule 164:
Filing Application for Waiver:
- Form GST SPL-01: To be used by taxpayers eligible under Clause (a) of Section 128A (notices or statements under Section 73).
- Form GST SPL-02: To be used by taxpayers eligible under Clauses (b) and (c) of Section 128A (final orders passed under Section 73, or orders under Sections 107/108).Note: Payments for the tax must be made through Form GST DRC-03 (Debit Entry in Electronic Liability Register).
Procedure for Filing Application:
| Clause | Form | Description |
|---|---|---|
| Clause (a) | GST SPL-01 | Application for waiver of interest and penalty for taxpayers with notices/statements under Section 73 |
| Clause (b) & (c) | GST SPL-02 | Application for taxpayers with final orders under Section 73 or orders under Section 107/108 |
Important Conditions for Waiver Eligibility:
- Taxpayers must provide proof of payment of the full amount of tax demanded.
- If the tax demand is related to an erroneous refund, the application will only be considered after full payment of the demanded amount.
- If the demand covers periods both included and excluded from the scheme, only the tax demand for the period covered under Section 128A will be considered for waiver.
Withdrawal of Appeals:
- Taxpayers must withdraw any pending appeals before the Appellate Authority, Appellate Tribunal, or Court.
- Proof of withdrawal must be submitted along with the application.
Procedure for Rejection of Application:
- The proper officer may issue a notice in Form GST SPL-03 if the application is deemed ineligible for waiver.
- The taxpayer may respond in Form GST SPL-04 within one month.
Acceptance or Rejection of Waiver Application:
| Scenario | Form Issued | Outcome |
|---|---|---|
| Application Accepted | GST SPL-05 | The waiver is granted, and proceedings are concluded. |
| Application Rejected | GST SPL-07 | The waiver is rejected, and the original demand stands. |
Timeline for Filing and Approval of Applications:
- Application Filing Deadline: Taxpayers have three months from the date notified under Section 128A to file their waiver applications.
- Review by Proper Officer: The proper officer must approve or reject the application within three months from the filing date. If no order is issued within this time, the waiver application is deemed approved.
Additional Conditions:
- Payment of Additional Tax: Taxpayers required to pay additional amounts as per appellate orders must settle the additional liability within three months from the appellate order date. Failure to do so will void the waiver.
- Erroneous Refunds: The waiver does not apply to amounts payable due to erroneous refunds.
The GST Amnesty Scheme 2024, introduced under Section 128A and detailed in Notification Nos. 21/2024 and 22/2024, offers significant relief to GST taxpayers by waiving interest and penalties for past tax demands, provided that the outstanding tax is settled within the specified timelines. Taxpayers are encouraged to utilize this opportunity to clear their dues and conclude pending proceedings, ensuring compliance with the GST regime.
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