The GST Council, during its 53rd meeting on June 22, 2024, approved a waiver scheme to alleviate tax disputes and offer substantial relief to taxpayers. This scheme focuses on waiving interest and penalties on tax demands issued under Section 73 of the CGST Act, 2017 for the financial years 2017-18, 2018-19, and 2019-20. The waiver scheme is available only for cases that do not involve fraud, suppression, or willful misstatement. To qualify for this relief, taxpayers must pay the full amount of the tax demand by March 31, 2025.
Key Provisions of the Waiver Scheme:
Eligibility Criteria:
- The scheme applies to tax demands issued under Section 73 of the CGST Act, 2017, covering non-fraud cases for FY 2017-18, 2018-19, and 2019-20.
- Taxpayers must settle the tax amount in full by March 31, 2025 to benefit from the waiver of interest and penalties.
Implementation Through Rule 164:
- To operationalize this waiver scheme, Rule 164 was added to the CGST Rules, 2017, through Notification No. 20/2024 dated October 8, 2024, effective from November 1, 2024.
- This rule outlines the procedures taxpayers need to follow to avail of the waiver.
Filing Requirements:
- Taxpayers who wish to claim the waiver must submit an application using FORM GST SPL-01 or FORM GST SPL-02 on the GST common portal.
- These forms must be filed within three months from the effective date, with the final deadline being March 31, 2025.
Availability of Forms GST SPL-01 and SPL-02:
- Development and Portal Availability: Forms GST SPL-01 and GST SPL-02 are currently under development and are expected to be available on the GST portal in the first week of January 2025.
- Action for Taxpayers: In the interim, taxpayers should focus on paying the tax amount mentioned in their demand notices, statements, or orders issued under Section 73 before the March 31, 2025, deadline to qualify for the waiver.
Payment Instructions:
- For Demand Orders: Taxpayers can pay the demanded tax amount using the “payment towards demand” facility on the GST portal.
- For Notices: Taxpayers may use Form GST DRC-03 to make payments against notices.
- Adjustment for Prior Payments via Form GST DRC-03: If a taxpayer has already made payment through Form GST DRC-03 for any demand order, they will need to link this payment to the demand order using Form GST DRC-03A. This form is now available on the GST portal.
Important Deadlines:
- Application Deadline: March 31, 2025, for filing Forms GST SPL-01 and GST SPL-02 to claim the waiver.
- Payment Deadline: Full payment of the tax demand must also be completed by March 31, 2025, to qualify for waiver benefits.
Support and Resources:
- FAQs and Detailed Advisory: Taxpayers are encouraged to refer to the FAQs and the Detailed Advisory on the GST portal for a comprehensive understanding of the waiver scheme.
- Technical Assistance: If taxpayers encounter issues in using the GST portal for these processes, they are advised to raise a support ticket on the Grievance Redressal Portal: https://selfservice.gstsystem.in.
Conclusion:
The waiver scheme under Section 128A provides a valuable opportunity for taxpayers to settle outstanding demands from previous financial years without incurring additional interest or penalties. Taxpayers are advised to make necessary preparations to meet the March 31, 2025 deadline for tax payment and application submission, ensuring they take full advantage of this relief measure.
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