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.
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• 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.
