The Goods and Services Tax (GST), implemented on July 1, 2017, unified various indirect taxes previously levied by both the Central and State Governments in India. To address pending litigations and promote compliance, the government has periodically introduced amnesty schemes. This guide provides an in-depth look at the GST Amnesty Scheme, detailing its evolution, benefits, eligibility criteria, and procedural aspects, including the latest updates as of January 2025.
In 2019, the government introduced the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) to resolve disputes related to pre-GST indirect taxes such as Central Excise and Service Tax. The scheme offered substantial relief in tax dues, interest, and penalties, aiming to clear the backlog of litigations from the pre-GST era.
Key Features of SVLDRS 2019:
• Applicability: Covered disputes under laws subsumed by GST, including Central Excise and Service Tax.
• Relief Provisions:
o For cases pending adjudication or appeal:
Tax dues up to ₹50 lakhs: 70% relief.
Tax dues above ₹50 lakhs: 50% relief.
o For cases with confirmed demands (no appeal pending):
Tax dues up to ₹50 lakhs: 60% relief.
Tax dues above ₹50 lakhs: 40% relief.
o Voluntary Disclosure: No relief; full tax dues payable.
• Procedure:
o Submission of declaration in Form SVLDRS-1.
o Issuance of estimate in Form SVLDRS-2 by the Designated Committee.
o Opportunity for the declarant to agree or disagree with the estimate.
o Final determination and payment followed by the issuance of a discharge certificate.
To further encourage compliance and address non-fraudulent cases from the initial years of GST implementation, the government announced a new GST Amnesty Scheme effective from November 1, 2024.
Key Features of the 2024 Scheme:
• Applicability: Pertains to non-fraudulent cases for the financial years 2017-18, 2018-19, and 2019-20.
• Relief Provisions:
o Waiver of Interest and Penalty: Taxpayers are required to pay the actual GST amount due; interest and penalties are waived.
• Eligibility:
o Taxpayers who have received notices under Section 73 of the CGST Act.
o Cases where the tax amount has been determined, but interest and penalties are yet to be paid.
• Procedure:
o Payment of the GST amount by March 31, 2025.
o Submission of the waiver application online through the GST portal in Form GST SPL-01 or GST SPL-02 by June 30, 2025.
Example:
A taxpayer with an outstanding GST liability of ₹10 lakhs for the financial year 2018-19, along with accrued interest and penalties totaling ₹2 lakhs, can benefit from the scheme by paying only the ₹10 lakhs GST due by March 31, 2025. The additional ₹2 lakhs in interest and penalties would be waived upon successful application.
On January 23, 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 08/2025, providing relief to taxpayers who faced delays in filing Form GSTR-9C (reconciliation statement) for the financial years 2017-18 to 2022-23.
Key Highlights:
• Waiver of Late Fees: Late fees under Section 47 of the CGST Act are waived for registered persons required to submit Form GSTR-9C but failed to do so within the stipulated timelines.
• Applicability: The waiver applies to delays in filing for the financial years 2017-18 to 2022-23.
• Conditions:
o Taxpayers must file the pending GSTR-9C forms within the specified period as outlined in the notification.
Implications:
This waiver aims to encourage taxpayers to comply with annual return filing requirements without the burden of accumulated late fees, thereby promoting better adherence to GST regulations.
For more details refer: https://www.linkedin.com/feed/update/urn:li:activity:7288587664864219136
• Reduction in Litigation: By resolving pending disputes and waiving penalties, the schemes help in reducing the backlog of cases in the judicial system.
• Financial Relief: Taxpayers benefit from substantial waivers of interest and penalties, easing their financial burden.
• Enhanced Compliance: Encourages taxpayers to regularize their GST filings and payments, leading to improved compliance rates.
• Simplified Procedures: Streamlined processes for application and settlement make it easier for taxpayers to avail of the benefits.
While the amnesty schemes offer significant advantages, taxpayers should be mindful of the following:
• Eligibility Criteria: Ensure that all conditions are met to qualify for the benefits.
• Deadlines: Adhere strictly to payment and application submission deadlines to avoid disqualification.
• Accurate Disclosures: Provide complete and accurate information in declarations to prevent future disputes.
• Exclusions: Be aware of cases not covered under the schemes, such as fraudulent cases or those involving erroneous refunds.
The GST Amnesty Schemes introduced by the Indian government reflect a proactive approach to resolving tax disputes and enhancing compliance. By offering waivers on interest, penalties, and late fees, these schemes provide much-needed relief to taxpayers and contribute to a more efficient tax administration system. Taxpayers are encouraged to assess their eligibility and take timely action to avail of these benefits.
Staying informed and compliant with evolving tax regulations is crucial for smooth business operations. Professional assistance can ensure a seamless experience in navigating these schemes and maintaining adherence to GST laws.
For professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091.
A GST amnesty scheme is a time-limited program offered by the government to provide relief to taxpayers who have failed to comply with certain GST regulations, such as filing returns or paying taxes on time. These schemes often involve waivers or reductions in penalties, late fees, or interest.
GST amnesty schemes are introduced to: Encourage compliance and increase tax revenue. Provide relief to taxpayers facing genuine difficulties. Reduce litigation and administrative burden. Improve the overall efficiency of the GST system.
The specific eligibility criteria vary depending on the particular amnesty scheme. Generally, it benefits taxpayers who have outstanding dues or have failed to file returns within the stipulated time.
CBIC Circular 08/2025, dated January 23, 2025, addresses the waiver or reduction of late fees payable on the filing of GST annual returns (GSTR-9 and GSTR-9C) for specific financial years. (Note: Always refer to the actual circular for the precise details, as summaries might not be exhaustive.)
The circular typically outlines: The specific financial years covered by the late fee waiver/reduction. The quantum of waiver/reduction in late fees (which might be a complete waiver or a reduced amount). The conditions that taxpayers need to fulfill to be eligible for the benefit. The time period within which the annual returns must be filed to avail the benefit of the amnesty scheme.
Eligibility is usually defined by the circular based on factors such as: Type of taxpayer (regular, composition, etc.). Turnover of the taxpayer. Specific financial years for which the returns are due.
The circular usually specifies the process for availing the benefit. This may involve filing the overdue annual returns within the specified time period and fulfilling any other conditions mentioned in the circular. No separate application might be required; simply filing the return with the reduced late fee (as per the circular) within the stipulated time is sufficient.
The circular will explicitly state the deadline for filing the annual returns to be eligible for the late fee waiver/reduction. It’s critical to adhere to this deadline.
Yes, the government may announce amnesty schemes for other GST-related issues, such as: Non-payment of taxes. Late filing of other returns (GSTR-1, GSTR-3B, etc.). Issues related to e-way bills.
Information about current GST amnesty schemes is typically published on the CBIC website (www.cbic.gov.in) and through press releases and notifications. Consulting with a GST professional is a good way to stay informed.
Benefits include: Reduced financial burden due to waiver/reduction of penalties and late fees. Opportunity to become compliant with GST regulations. Avoidance of further legal action.
Check the specific terms and conditions of the scheme announced by the government.
The CBIC website is the official source for notifications.
You will be liable to pay the full amount of penalties and late fees.
The rules regarding this will be defined by the specific scheme.
The circular or notification announcing the scheme will provide details on the calculation.
The specific date will be announced in the notification or circular related to the scheme. For GST Amnesty Scheme vide circular no. 08/2025, the last date is 31st March 2025.
Usually, no separate form is needed. Filing the return within the stipulated time with the reduced late fee is sufficient.
A professional can help you understand the scheme’s details and ensure you meet all the requirements.
Common issues include understanding the eligibility criteria and meeting the deadlines.
Consult with a professional specializing in GST law for legal advice or reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091.
