GST Amnesty Scheme 2024: How to Withdraw Appeal & Apply for Waiver of Interest & Penalty
In a new advisory dated January 14, 2025, GSTN informed that certain taxpayers are advised to submit their requests for withdrawal of appeal applications to the concerned Appellate Authority. The Appellate Authority will forward such requests to GSTN through the State Nodal Officer for withdrawal of appeal applications as filed before 21.03.2023 and not disposed of from the backend.
GST Amnesty Scheme under Section 128A in Budget 2024
GST-registered taxpayers who wish to apply for the GST Amnesty Scheme 2024, announced in the Budget 2024 under Section 128A, should be aware of a procedural change in filing their application. Taxpayers cannot apply for the GST Amnesty Scheme under Section 128A without submitting a request for the withdrawal of any existing appeals. This procedural change applies to certain taxpayers specified by GSTN. To be eligible for the Amnesty Scheme, taxpayers must first apply to the concerned Appellate Authority to withdraw their existing appeal before they can apply for the Amnesty Scheme under Section 128A. Please note that for these specified taxpayers, the withdrawal of appeal option is not available on the GST portal.
Who is Eligible to File an Application with the Appellate Authority to Withdraw Their Appeal and Subsequently Apply for the Amnesty Scheme?
Taxpayers who have filed an appeal against a GST notice using GST APL 01 form before March 21, 2023, must first submit their request for withdrawal of the appeal to the concerned Appellate Authority.
advisory dated January 14, 2025, GSTN point out
“One of the conditions for filing an application under the waiver scheme is the withdrawal of the appeal applications filed against the demand order/notice/statement for which the waiver application is being submitted.”
It is to be noted that for appeal applications (APL 01) filed before the First Appellate Authority, the withdrawal option is already available on the GST portal. However, for appeal applications (APL 01) filed before 21.03.2023, the withdrawal option is not available on the GST portal. In such cases, taxpayers are advised to submit their request for withdrawal of appeal applications to the concerned Appellate Authority.
The Appellate Authority will forward these requests to GSTN through the State Nodal Officer for the withdrawal of these appeal applications as filed before 21.03.2023 and not disposed of from the backend.
Stands for GST Amnesty Scheme under Section 128A?
The GST Amnesty Scheme offers a one-time waiver of interest and penalties for certain cases raised under Section 73 of the CGST Act. Where Cases involving erroneous refunds are excluded from the scheme. Taxpayers must deposit 100% of the tax demanded to avail of the waiver, so it is essential to assess whether a case falls under the eligible categories,” he says.
As per the advisory, the much-awaited Forms GST SPL 01 and GST SPL 02 under the Amnesty Scheme (Section 128A of the CGST Act) are now available from January 14, 2025. The scheme waives interest and penalties for FY 2017-18 to FY 2019-20 upon tax payment but has some key limitations. It excludes Section 74 cases, does not allow partial dispute settlement, denies refunds for prior payments of interest or penalties, and closes all proceedings post-payment, except for appeals. While the scheme aims to reduce litigation, its rigid framework and limitations may hinder its effectiveness and may need review.
Last date to Apply for the GST Amnesty Scheme under Section 128A: Waiver of Interest and Penalty
According to department circulars, the deadline for standard amnesty applications is March 31, 2025. This is the final deadline for both applying and making the payment for disputed taxes.
GSTN has informed that only two forms, GST SPL-01 and SPL-02, are required to apply for this scheme and are now available on the GST portal. To apply for the scheme, taxpayers must...
The underlying cause for the GST notices should be genuine mistakes or alternate interpretations of GST legal provisions, without any malafide intention. Additionally, only the GST notices for the period from July 1, 2017, to March 31, 2020 are eligible for benefits under Section 128A.
The Amnesty Scheme under Section 128A primarily targets demands raised under Section 73, which addresses non-fraudulent situations. These may include errors in return filing, transaction reporting, delays in filing, and genuine cases of short tax payment or excess claims for input tax credits, particularly when these issues arise from alternate interpretations of evolving GST laws.
GST notices issued under Section 74 (related to fraud cases) are not eligible for this scheme
It is important to note that the GST Amnesty Scheme does not cover cases involving erroneous refunds, where a taxpayer may have claimed and received refunds they were not entitled to.
“Section 74 cases are excluded from the scope of this Amnesty Scheme. Section 74 deals with situations involving fraud, willful misrepresentation, or suppression of facts, which are considered serious contraventions.”