GST Amnesty Scheme

Section 128A of the CGST Act, 2017 provides for waiver of Interest and penalty (Hereinafter called as "GST Amnesty")in case of any Show Cause notice or Order issued under Section 73 or Appeallate Order issued under Section 107 or 108. The above Section was first introduced vide Finance Act, 2024 and was notifed by Notification No. 17/2024-Central Tax dated 01st November 2024. a Detailed discussion is done in this page about Eligibility, Pre-conditions, Process of availing GST Amnesty Scheme, Challenges in GST Amnesty Scheme. Read on more for clarity.

What are the scenarios in which GST Amnesty Scheme is available?

As per Section 128(1), GST Amnesty Scheme is available in following Scenario:

a) A Notice is issued u/s 73(1) or a Statement is issued in Section 73(3) ('Non-Fraud cases')or

b) An Order is issued U/s 73(9) ('Non-Fraud Cases')

c) An Order passed U/s 107(11) - First Appeallate Authority

d) An Order passed U/s 108(1) Revisional Order

However, GST Amnesty scheme in above Scenarios is available only if the notice, Statement or any of the order is pertaining to FY 2017-18, 2018-19 and 2019-20.

What is the timelimit for availment of Amnesty Scheme?

In Order to be eligible for Amnesty Scheme, Full amount of Tax as determined in Notice, Statement or Orders for the prescribed financial year must be discharged by following the due process laid down in Rule 164 on or before 31-March-2025 [N No. 21/2024 dated 08-10-2024]

Further to above Form SPL-01/SPL 02, as applicable, must be filed within 3 months i.e on or before 30th June 2025 [Rule 164(6)]

What are the key instances in which GST amnesty scheme is not available?

Key instances where GST Amnesty Scheme is not available are :

a) Notice or Orders u/s 74

b) Show cause notice or Orders u/s 73 for FY other than 17-18, 18-19 and 19-20

c) Appeal or Writ is pending as on 31-03-2025 [In effect, if appeal is not withdrawn before 31-03-2025]

d) Matters such as Erroneous Refunds, ITC Eligible further to Section 16(5) i.e Cumulative view of Transactions appearing in 2A Vs GSTR 3B.

What is the procedure to avail GST Amnesty Scheme?

Once you are eligible for GST Amnesty scheme following process shall be followed:

In case of Show Cause Notice

a) Discharge FULL Amount of tax as per the Show Cause notice Via Form DRC 03 on or before 31-03-2025

b) File Form SPL - 01 in online portal on or before 30-06-2025.

c) Follow the process till Final Order in Form SPL - 05 is received.

In case of Orders

a) Discharge FULL Amount of tax as per the Order Via debit to Electronic Liability Ledger on or before 31-03-2025 [In case tax has been paid via DRC 03, then File DRC - 03A to map it in Liability Ledger]

b) File Form SPL - 02 in online portal on or before 30-06-2025.

c) Follow the process till Final Order in Form SPL - 05 is received.

Key Points to be kept in mind:

a) In case SCN or order Contains other matters and Erroneous refund together then entire amount of Tax including erroneous refund has to be paid on or before 31-03-2025 to be eligible for GST Amnesty Scheme. [Rule 164 (3) ]

b) In case SCN or order demand for for FY 2017-18 to 2019-20 andther years together then entire amount of tax including for such other period has to be discharged on or before 31-03-205 to be eligible for GST Amnesty Scheme [Rule 164(4) ]

Concluding Remarks

Every assessee availing GST Amnesty scheme must ensure appropriate payment of taxes in timely manner and Maintain adequate documentation in line with the requirement of the law for future reference.

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