New GST Amnesty Scheme from November 1, 2024: Key Compliance Details

Posted by Written by Archana Rao Reading Time: 3 minutes

India’s new GST amnesty scheme, effective from November 1, 2024, waives interest and penalties for non-fraudulent GST demands from 2017-18 to 2019-20. According to industry leaders, the scheme offers significant relief for eligible taxpayers. Tax must still be paid, with payments due by March 31, 2025, and waiver applications submitted online by June 30, 2025.

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India’s Ministry of Finance has issued new guidelines for GST (Goods and Services Tax)-registered taxpayers seeking to apply for the “conditional waiver of interest and penalty” scheme. The provision was announced earlier this year in July in the union budget announcement.

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According to the announcement, the conditional waiver of interest and penalty scheme will be effective from November 1, 2024, and will waive interest and penalties for non-fraudulent GST demands under section 73 of the Central Goods and Services Tax (CGST) Act for the fiscal years 2017-18 to 2019-20. It is important to note that the waiver only applies to interest and penalties; the tax demand itself must still be paid. Additionally, the scheme offers one-time waiver of late fees to the taxpayers.

Eligibility and application process

Taxpayers eligible for this waiver must apply through specific forms by the required deadlines:

  • Form GST SPL-01: For notices or statements under section 128A, providing details of the notice and tax payments made.
  • Form GST SPL-02: For orders under the same section, again detailing payments and relevant orders.

Applications must be submitted online, and taxpayers should ensure that payments are made via the electronic liability register before submitting these forms. Proper filing is essential to avoid further complications or rejections. Tax payments should be completed by March 31, 2025, with forms uploaded by June 30, 2025.

Steps and compliance

  1. Ensure full tax payment before submitting the waiver forms.
  2. Submit the correct form depending on whether you received a notice or an order. 
  3. If an appeal or writ has been filed, proof of withdrawal must accompany the application.
  4. The assigned officer will review the application and approve or reject it within a set period.

Key features of the new GST amnesty scheme

Waiver coverage

  • The scheme waives off interest and penalties for specified GST demand notices, but tax liabilities must still be paid in full.
  • The waiver only applies to non-fraudulent cases where GST demand was raised for mistakes or discrepancies in returns for the mentioned fiscal years.

Eligibility

  • Taxpayers who have been assessed under Section 73 (pertaining to non-fraudulent cases) and are issued demand notices for the periods FY 2017-18 to 2019-20.
  • The scheme covers the waiver of interest and penalties arising between July 1, 2017, and March 31, 2020.
  • The scheme is not applicable to taxpayers involved in fraudulent activities or those issued notices under Section 74 (related to fraud cases).

Forms and deadlines

  • Form GST SPL-01 is used to apply for the waiver in cases where a notice has been issued. 
  • Form GST SPL-02 is for cases where an order has been passed.
  • The tax payments related to these demands must be made by March 31, 2025, and the corresponding forms must be submitted by June 30, 2025.

Officer review 

  • The GST officer will review the application and, if satisfied, approve the waiver.
  • In case of any discrepancies or missing information, the application can be rejected, and the taxpayer may need to provide additional documentation or corrections.

Attention to detail

  • Proper and timely filing of forms is crucial to avoid the risk of rejection. The process, while beneficial, is compliance-intensive, requiring attention to detail when submitting documents.

Tax experts welcome the GST amnesty scheme

Tax professionals view the scheme as a much-needed relief for taxpayers, especially for those who made unintentional errors during the initial GST implementation years. The amnesty scheme is expected to help reduce the significant financial burden arising from interest and penalties that have accumulated over time, providing relief to individuals and businesses struggling to meet their outstanding tax obligations. However, they also note that the process is compliance-heavy, requiring thorough documentation to avoid rejection.

The new GST Amnesty Scheme is expected to provide a path for non-fraudulent taxpayers to settle old GST disputes by waiving interest and penalties, as long as they meet the deadlines and follow the proper procedure.

Also Read: Tax Dispute Resolution Scheme for Contractors in Government Procurement in India

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