Navigating the GST Amnesty Scheme 2024: Procedures, Eligibility, and Compliance

Navigating the GST Amnesty Scheme 2024: Procedures, Eligibility, and Compliance This memorandum provides a detailed overview of the Goods and Services Tax (GST) Amnesty Scheme 2024, introduced under Section 128A of the GST Act (Budget 2024), and outlines the necessary steps for eligible taxpayers to avail themselves of its benefits. This scheme offers a significant opportunity for relief from penalties and interest associated with certain GST disputes. However, strict adherence to the prescribed procedures is paramount. I. Scheme Overview & Eligibility The GST Amnesty Scheme 2024 provides a one-time waiver of interest and penalties for specific categories of non-fraudulent tax disputes falling under Section 73 of the CGST Act. These disputes typically stem from: Inadvertent errors in tax calculations. Short payments due to clerical oversights. Delays in filing returns. Misinterpretations of tax laws resulting in underpayment. Crucially, this scheme excludes cases involving fraudulent activity as defined under Section 74 of the CGST Act. This includes instances of tax evasion, willful misrepresentation, suppression of facts, or fraudulent refund claims. A rigorous assessment of your past GST liabilities is recommended to determine eligibility under Section 73. II. Mandatory Appeal Withdrawal: A Critical Requirement A precondition for availing the Amnesty Scheme is the unconditional withdrawal of any pending appeals against the relevant GST demand order. This requirement is designed to streamline the resolution process and prevent taxpayers from pursuing relief under both the Amnesty Scheme and a parallel appeal. The withdrawal procedure depends on the date the appeal was originally filed: Appeals Filed Before March 21, 2023: Due to system limitations, a direct online withdrawal option is unavailable. Taxpayers must submit a formal written request for withdrawal to the relevant appellate authority. The appellate authority will then coordinate with the State Nodal Officer and GSTN to process the withdrawal within the GST system. Document all communication and retain proof of submission. Appeals Filed After March 21, 2023: The GST portal provides an online withdrawal option. Complete the withdrawal process through the GST portal, ensuring all steps are properly executed and documented. III. Tax Payment Requirement Eligibility for the interest and penalty waiver is contingent upon the full deposit of the disputed tax amount as determined in the demand order. Payment plans are not permissible. While penalties and interest may be waived under the scheme, the underlying principal tax liability must be satisfied in its entirety. IV. Application Process & Deadline GSTN has introduced specific forms—GST SPL-01 and GST SPL-02—for applications under Section 128A. The application process comprises the following steps: Appeal Withdrawal: Complete the necessary appeal withdrawal process as detailed in Section II. This is a prerequisite for submitting the amnesty application. Amnesty Application Filing: Upon confirmation of appeal withdrawal, submit the appropriate application form (GST SPL-01 or GST SPL-02) through the GST portal. Ensure all fields are accurately completed and supporting documentation is attached. Tax Payment: Remit 100% of the disputed tax liability before the stated deadline. Retain proof of payment for submission with the application. Submission of Payment Proof: Provide supporting documentation as evidence of tax payment to substantiate eligibility for the interest and penalty waiver. The deadline for both application filing and full tax payment is March 31, 2025. Given the procedural complexities, we strongly advise initiating this process well in advance of the deadline to mitigate potential delays. V. Government Stance & Compliance Benefits The mandatory appeal withdrawal requirement reflects the government's intent to reduce pending litigation and encourage voluntary tax compliance. This initiative aims to provide businesses with a pathway to resolve past disputes, improve their compliance record, and avoid protracted legal proceedings. VI. Available Support & Assistance For assistance with the appeal withdrawal or application process, taxpayers can utilize the GST Self-Service Portal. Issues pertaining to the waiver scheme can be reported under the designated category: "Issues related to Waiver Scheme.” Furthermore, the official advisory issued on December 29, 2024, available on the GST portal, offers further clarification regarding the prescribed procedures. VII. Conclusion & Recommendations Given the approaching March 31, 2025, deadline, we strongly recommend that you promptly evaluate your eligibility under Section 73, undertake the necessary appeal withdrawal procedures, and complete the application process. By adhering to these guidelines, you can maximize the benefits of the GST Amnesty Scheme 2024, achieving compliance and securing valuable financial relief from past inadvertent tax errors.