Comprehensive Guide on GST Amnesty Scheme in India

1. Introduction

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.

2. Evolution of GST Amnesty Schemes

2.1 Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

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:
  
  • For cases pending adjudication or appeal:
    
    • Tax dues up to ₹50 lakhs: 70% relief.
    • Tax dues above ₹50 lakhs: 50% relief.
  • For cases with confirmed demands (no appeal pending):
    
    • Tax dues up to ₹50 lakhs: 60% relief.
    • Tax dues above ₹50 lakhs: 40% relief.
  • Voluntary Disclosure: No relief; full tax dues payable.
• Procedure:
  
  • Submission of declaration in Form SVLDRS-1.
  • Issuance of estimate in Form SVLDRS-2 by the Designated Committee.
  • Opportunity for the declarant to agree or disagree with the estimate.
  • Final determination and payment followed by the issuance of a discharge certificate.

2.2 GST Amnesty Scheme 2024

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:
  
  • Waiver of Interest and Penalty: Taxpayers are required to pay the actual GST amount due; interest and penalties are waived.
• Eligibility:
  
  • Taxpayers who have received notices under Section 73 of the CGST Act.
  • Cases where the tax amount has been determined, but interest and penalties are yet to be paid.
• Procedure:
  
  • Payment of the GST amount by March 31, 2025.
  • 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.

3. CBIC Notification No. 08/2025 – Waiver of Late Fees for GSTR-9C Filing Delays

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:
  
  • 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

4. Benefits of the GST Amnesty Schemes

• 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.

5. Challenges and Considerations

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.

6. Conclusion

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.

7. Additional Resources

For further reading, consider exploring the following topics:

• GST Registration Process in India: A step-by-step guide on obtaining GST registration.
• GST Returns Filing Guide: Detailed insights on monthly and annual GST filings.
• GST Advisory Services Guide: Expert Insights on Tax Planning and Strategic Compliance.
• GST Exemptions Guide: Detailed Insights on Eligibility, Categories, and Benefits.

Frequently Asked Questions (FAQs) on GST Amnesty Scheme (Including CBIC Circular 08/2025)

General Information about GST Amnesty Schemes

1.       What is a GST amnesty scheme?

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.  

2.       Why are GST amnesty schemes introduced?

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.

3.       Who can benefit from a GST amnesty scheme?

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 and Annual Return Late Fees

4.       What is CBIC Circular 08/2025 about?

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.)  

5.       What are the key highlights of CBIC Circular 08/2025?

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.  

6.       Who is eligible to benefit from the late fee waiver/reduction under Circular 08/2025?

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.

7.       How do I avail the benefit under Circular 08/2025?

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.

8.       What is the time limit for filing the annual returns under Circular 08/2025?

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.

General Information about GST Amnesty Schemes

9.       Are there other GST amnesty schemes besides the one related to annual returns?

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.

10.   How can I find out about current GST amnesty schemes?

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.

11.   What are the benefits of availing a GST amnesty scheme?

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.

Other generally asked questions related to GST amnesty schemes

12.   How do I know if I am eligible for a GST amnesty scheme?

Check the specific terms and conditions of the scheme announced by the government.

13.   Where can I find the latest notifications regarding GST amnesty schemes?

The CBIC website is the official source for notifications.  

14.   What happens if I don’t avail a GST amnesty scheme?

You will be liable to pay the full amount of penalties and late fees.

15.   Can I avail a GST amnesty scheme more than once?

The rules regarding this will be defined by the specific scheme.

16.   How do I calculate the reduced late fee under a GST amnesty scheme?

The circular or notification announcing the scheme will provide details on the calculation.

17.   What is the last date to avail the benefit of a GST amnesty scheme?

The specific date will be announced in the notification or circular related to the scheme.

18.   Are there any specific forms to be filled for availing a GST amnesty scheme?

Usually, no separate form is needed. Filing the return within the stipulated time with the reduced late fee is sufficient.

19.   What is the role of a professional in availing a GST amnesty scheme?

A professional can help you understand the scheme’s details and ensure you meet all the requirements.

20.   What are the common issues faced by taxpayers regarding GST amnesty schemes?

Common issues include understanding the eligibility criteria and meeting the deadlines.

21.   Where can I find legal advice regarding GST amnesty schemes?

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.