GST Amnesty Scheme 2024: A Comprehensive Guide to Clearing Past Liabilities

The Government of India has introduced the GST Amnesty Scheme 2024 under Section 128A of the CGST Act. This initiative, based on recommendations from the 53rd and 54th GST Council meetings, provides taxpayers with a one-time opportunity to clear outstanding GST liabilities from the financial years 2017-18, 2018-19, and 2019-20. The scheme offers waivers on penalties and interest, ensuring a smoother compliance process for businesses.

Here is a comprehensive breakdown of the scheme, its benefits, application procedures, and eligibility criteria.

Key Highlights of the Amnesty Scheme

1. Objective: To allow taxpayers to clear pending GST liabilities with reduced penalties and interest.
2. Applicable Tax Periods: July 2017 to March 2020.
3. Waivers Offered: Penalties and interest related to demands raised under Section 73 of the CGST Act.
4. Deadline: Applications must be filed by 31st March 2025 or within six months from the redetermination of tax liability under specific conditions.

Eligibility Criteria

Taxpayers can apply under the following circumstances:

1. Pending Notices or Statements Under Section 73:
2. Taxpayers who have received notices/statements but no final orders have been issued.
3. Partially Adjudicated Cases:
4. Where orders under Section 73 are issued, but no final appellate or revisional decisions exist under Sections 107, 108, or 113.
5. Cases Transitioned From Section 74 to Section 73:
6. Notices raised under Section 74 but later revised to Section 73 on the direction of appellate authorities.

Application Forms: SPL-01 vs. SPL-02

Form Type Applicability When to File GST SPL-01For cases where no orders have been issued under Section 73.File if the notice/statement is still pending adjudication.GST SPL-02For cases where orders under Section 73 have been issued, but appeals are not yet finalized under Sections 107, 108, or 113.File if the tax demand has been redetermined or partially adjudicated.

? Important: If appeals or petitions were filed earlier, they must be withdrawn to qualify for the scheme. Proof of withdrawal is required during the application process.

Application Process

1. Log in to GST Portal:
2. Access the GST portal using your credentials.
3. File the Relevant Application:
4. For pending adjudications, use GST SPL-01.
5. For partially adjudicated cases, use GST SPL-02.
6. Payment of Tax Liabilities:
7. Payments must be made using GST DRC-03 or adjusted via GST DRC-03A if applicable.
8. Payments can be made using cash or available input tax credit (ITC), except for liabilities under Reverse Charge Mechanism (RCM) or erroneous refunds, which must be paid in cash.
9. Submit Proof of Withdrawal:
10. If earlier appeals/petitions were filed, upload proof of withdrawal.
11. Await Approval:
12. The proper officer will review the application and either approve (GST SPL-05) or reject it (GST SPL-07).

Exclusions from the Amnesty Scheme

While the scheme is comprehensive, it does not cover:

1. Late fees, redemption fines, or penalties unrelated to Section 73 demands.
2. IGST payable under the Customs Act.
3. Interest on delayed filing of self-assessed tax liabilities under Section 75(12).

Benefits of the Scheme

1. Cost Savings: Waiver of hefty penalties and interest.
2. Compliance Made Easy: Simplified forms and clear timelines.
3. Stress-Free Tax Records: Avoid future compliance issues and notices.

Important Deadlines

1. General Applications: File by 31st March 2025.
2. Redetermined Cases: File within six months of the redetermination order issued under Section 73.

Key Provisions

1. Payment Adjustments: Taxpayers can deduct retrospective adjustments under Section 16(5) and 16(6) while calculating the payable tax.
2. Full Payment Requirement: Partial payments do not qualify for waivers. The full tax demand must be cleared.
3. Appeals Against Rejection: Rejections under SPL-07 can be appealed within the time limits specified under Section 107.

Why You Should Act Now

The GST Amnesty Scheme 2024 is a one-time opportunity for businesses to rectify past non-compliances without the burden of penalties or mounting interest. With a clearly defined process and ample time to apply, this scheme can help businesses achieve tax compliance with minimal financial strain.

For personalized guidance or assistance with filing your application, feel free to reach out to us. Let’s simplify GST compliance together!