Commercial’s Practical Guide to GST Amnesty by V.S. Sudhir – 1st Edition 2025.

Commercial’s Practical Guide to GST Amnesty by V.S. Sudhir – 1st Edition 2025.

About the book

For a limited period, the GST Amnesty Scheme provides a waiver of interest and penalties for taxpayers on specific outstanding GST demands, helping to clear backlogs and promote compliance. A scheme announced in Budget 2024 offers relief for non-fraudulent cases from the initial years of GST and is currently active.

Who is eligible for the amnesty scheme?

The current GST Amnesty Scheme (under Section 128A) covers specific cases and time periods, mainly for non-fraudulent tax demands.

• Eligible cases: Tax demands arising from notices or orders under Section 73 (non-fraudulent) for the financial years 2017–18, 2018–19, and 2019–20.
• Special provisions: The scheme also includes cases where a Section 74 (fraud) notice was later reclassified and assessed under Section 73 by an appellate authority or court.
• Excluded cases:
  • Matters involving fraud, willful misstatement, or suppression of facts.
  • Cases related to erroneous refunds.
  • Any GST appeals or writ petitions that have not been withdrawn.

Conditions to avail the benefits

To qualify for the amnesty scheme, a taxpayer must take the following steps:

• Payment of tax: Pay the full amount of the outstanding tax demand, as specified in the notice or order, by the designated deadline.
• Withdraw appeals: Formally withdraw any pending appeals or writ petitions related to the tax demand before applying for the waiver.

Application process

Follow these steps to apply for the waiver through the GST portal:

1. Log in: Go to the official GST portal and navigate to “Services” > “User Services” > “My Applications”.
2. Select application type: From the “Application type” dropdown, choose “Apply for Waiver Scheme under Section 128A” and click “New Application”.
3. Choose the correct form:

1. Form SPL-01: For cases where a notice or statement was issued, but no final order has been passed.
2. Form SPL-02: For cases where a demand order has been issued, including those pending at the appellate level.

1. Fill out the application:

1. Enter the details of the demand order or notice.
2. Provide details of the tax payment made, such as the DRC-03 acknowledgment reference number.
3. Confirm the withdrawal of any pending appeals, if applicable.

1. Upload documents: Attach all required supporting documents, including proof of tax payment and appeal withdrawal. Up to five files, each with a size limit of 5 MB, can be uploaded.
2. File the application: After saving and previewing the form, submit it using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
3. Generate ARN: An Application Reference Number (ARN) will be generated upon successful submission.

Key deadlines for the current scheme

For taxpayers with eligible demands for FY 2017–18, 2018–19, and 2019–20, these are the critical dates:

• March 31, 2025: The last date to pay the full tax amount.
• June 30, 2025: The deadline to file the waiver application (Form SPL-01 or SPL-02).

Post-filing process and potential outcomes

After a taxpayer files an amnesty application, the GST officer will verify the details, which can lead to one of the following outcomes:

• Approval: If the application is verified and found to be in order, the officer will issue Form GST SPL-04 to close the proceedings, formally waiving the interest and penalties.
• Show cause notice: If discrepancies are found, the officer will issue a Show Cause Notice (Form GST SPL-03). The taxpayer has one month to respond using Form GST SPL-04.
• Rejection: The application may be rejected (Form GST SPL-05) if the officer finds issues, such as incomplete payment, late filing, or an invalid declaration. The taxpayer has the option to appeal against the rejection.

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