GSTN has issued an advisory today outlining the steps for individuals to pay their tax demand under the GST Amnesty Scheme.
If you are looking to apply for the Goods and Services Tax (GST) amnesty scheme, which eliminates interest and penalties from specified GST tax demand notices, take note of this updated process. This information was released by GSTN on November 8, 2024. The advisory states that the necessary forms for the scheme—GST SPL-01 and GST SPL-02—are currently under development and are expected to be available by the first week of January 2025. As a result, individuals wishing to settle their tax demand under the scheme can do so using an alternative form in the interim.
“In this regard, it is informed that Form GST SPL-01 and Form GST SPL-02 are under development and are tentatively scheduled for release on the common portal in the first week of January 2025. Meanwhile, taxpayers are advised to pay the demanding tax amount from the notice, statement, or order issued under Section 73 on or before March 31, 2025, to secure the waiver benefits by paying their taxes within the deadline,” stated GSTN in the advisory dated November 8, 2024.
Taxpayers wishing to apply for the GST Amnesty Scheme without waiting for the GST SPL-01 and SPL-02 forms can utilize the DRC-03 form (or DRC-03A for specific cases) or can pay the tax demand through the electronic liability register, accessible in the post-login section of the GST portal via the path: Services > Ledgers > Electronic Liability Register > Part-I: Return related liabilities. By utilizing this method, taxpayers can initiate their application for the GST amnesty scheme immediately.
This advisory brings clarity regarding the availability of Forms SPL-01 and SPL-02, provisionally confirming their release for January 2025. While the timeline remains tentative, it delivers a clear direction for taxpayers, allowing them to transition from uncertainty to proactive preparation. This assurance enables taxpayers to concentrate on their priorities without the ongoing worry of checking the portal, facilitating a more organized approach to utilizing the Amnesty Scheme.
The advisory presents somewhat of a contradiction—it encourages taxpayers to make payments by the due date to benefit from the waiver scheme while acknowledging that the necessary forms to officially apply for these benefits are still being developed.
Which Form to Use to Apply for the GST Amnesty Scheme Now
According to GSTN’s advisory, taxpayers can settle the tax demand through the “payment towards demand” feature for demand orders and by utilizing Form GST DRC-03 for notices. However, if payment has already been made through Form GST DRC-03 for any demand order, taxpayers need to link the submitted Form GST DRC-03 to that demand order using Form GST DRC-03A, which is currently accessible on the common portal.” This explanation clarifies which taxpayers must file the DRC-03 Form and which should use the electronic liability register for tax payment.
Use DRC-03 (and DRC-03A in specified cases) if you are: Taxpayers who received a show cause notice (SCN) without an adjudicating order. If a taxpayer made a part payment (e.g., paid Rs 150 for a tax demand of Rs 200), the adjustment can be completed by filing the DRC-03A form.
For the Electronic Liability Ledger: Taxpayers who have had an original adjudicating order issued but are still awaiting the order in appeal must pay the tax demand through the electronic liability ledger.
Taxpayers may choose to wait for the release of the SPL-01 and SPL-02 forms, expected by the first week of January 2025. However, for those who prefer not to wait when applying for the GST Amnesty Scheme, the above process can be followed.
GSTN noted in the advisory that the GST council had recommended waiving interest and penalties in demand notices or orders issued under Section 73 of the CGST Act, 2017 (applicable to cases not involving fraud, suppression, or willful misstatement) for the financial years 2017-18, 2018-19, and 2019-20. This initiative aims to decrease tax disputes and provide relief to taxpayers. To qualify for this waiver, the condition is that the full demanded tax must be paid by March 31, 2025.