Tag: extension of GST Amnesty Scheme

New GST Waiver Rules: What Taxpayers Need to Know

New GST amnesty scheme notified: Waiver of interest and penalty on GST tax demand for eligible taxpayers to be effective from November 1, 2024

Ministry of Finance notified has the rules and procedures to be followed if a GST-registered taxpayer wants to apply for the ‘conditional waiver of interest and penalty’ scheme announced in Budget 2024. This notification by the Ministry of Finance was released on October 8, 2024, effective November 1, 2024.

Who is eligible for this waiver and how does this work?

This conditional waiver scheme under section 128A aims to give a total waiver of interest and penalty for specified non-fraudulent GST demand notices under section 73 relating to FY 2017-19 to 2019-20. Do note that this scheme only waives off the interest and penalty amount; you still need to pay the tax demand amount.

An tax expert, speaking to ET Wealth Online, earlier said, “The Finance Bill introduces Section 128A, which provides a waiver of interest and penalties for non-fraudulent taxpayers being assessed only under Section 73 for the periods FY 2017-18, 2018-19, and 2019-20.

The eligible assesees have to make the payments vide Form DRC 03 until March 31, 2025 and upload the stipulated Forms until June 30, 2025. It must be ensured that the Forms are vigilantly filled to avoid any possibility of further litigation. Albeit the procedure is compliance heavy, however, it will ensure effective conclusion of proceedings arising out of Section 128A of the CGST Act,” another tax expert said.

“This is quite a welcome step as these were the initial period of GST and people had made mistakes in while filing their returns on account of which a plethora of demands had been raised. Coupled with the 18% interest and penalty, the demands for the defaults had become quite significant. Hence, this move provided a big relief to the taxpayers,” another tax expert.

According to the notification by the Ministry of Finance, here is the process of applying for this scheme:

Procedure and conditions for closure of proceedings under section 128A in respect of GST demands issued under section 73

(1) Any person who is eligible for waiver of interest, or penalty, or both in respect of a

notice or a statement mentioned in clause (a) of sub-section (1) of section 128A, may file an application electronically in FORM GST SPL-01 on the common portal, providing the details of the said notice or the statement, as the case may be, along with the details of the payments made in FORM GST DRC-03 towards the tax demanded.

(2) Any person who is eligible for waiver of interest, or penalty, or both, in respect of orders mentioned in clauses (b) and (c) of sub-section (1) of section 128A, may file an application electronically in FORM GST SPL 02 on the common portal, providing the details of the said order, along with the details of the payments made towards the tax demanded:

Provided that the payment towards such tax demands shall be made only by crediting the amount in the electronic liability register against the debit entry created by the said order.

Provided further that if the payment towards such tax demanded has been made through FORM GST DRC-03, an application in FORM GST DRC-03A, as prescribed in sub-rule (2B) of rule 142, shall be filed by the said person for credit of the said amount in the Electronic Liability Register against the debit entry created for the said demand, before filing the application in FORM GST SPL 02.

(3) Where the notice or statement or order mentioned in sub-section (1) of section 128A includes demand of tax, partially on account of erroneous refund and partially for other reasons, an application under subrule (1) or sub-rule (2) may be filed only after payment of the full amount of tax demanded in the said notice or statement or order, on or before the date notified under the said sub-section.

(4) Where the notice or statement or order mentioned in sub-section (1) of section 128A includes demand of tax, partially for the period mentioned in the said sub-section and partially for the period other than that mentioned in the said sub-section, an application under sub-rule (1) or sub-rule (2) may be filed only after payment of the full amount of tax demanded in the said notice or statement or order, on or before the date notified under the said sub-section.

(5) The amount payable under sub-rule (1) or sub-rule (2) shall be the amount that remains payable, after deducting the amount not payable in accordance with subsection (5) or sub-section (6) of section 16, from the amount payable in terms of the notice or statement or order under section 73, as the case may be

(6) Any person who wishes to file an application under sub-rule (1) or sub-rule (2), may do so within a period of three months from the date notified under sub-section (1) of section 128A: Provided that where an application in FORM GST SPL-02 is to be filed in cases referred to in the first proviso to sub-section (1) of section 128A, the time limit for filing the said application shall be six months from the date of communication of the order of the proper officer redetermining such tax under section 73

(7) The application under sub-rule (1) or sub-rule (2) shall be accompanied by documents evidencing withdrawal of appeal or writ petition, if any, filed before any Appellate Authority, or Tribunal or Court, as the case may be, to establish that the applicant is eligible for the waiver of interest or penalty or both, in terms of section 128A:

Provided that where the applicant has filed an application for withdrawal of an appeal or writ petition filed before the Appellate Authority or Appellate Tribunal or a court, as the case may be, but the order for withdrawal has not been issued by the concerned authority till the date of filing of the application under sub-rule (1) or sub-rule (2), the applicant shall upload the copy of such application or document filed for withdrawal of the said appeal or writ petition along with the application under subrule (1) or sub-rule (2), and shall upload the copy of the order for withdrawal of the said appeal or writ petition on the common portal, within one month of the issuance of the said order for withdrawal by the concerned authority.

(8) Where the proper officer is of the view that the application made in FORM GST SPL-01 or FORM GST SPL-02 is liable to be rejected as not being eligible for waiver of interest, or penalty, or both, as per section 128A, he shall issue a notice on the common portal to the applicant in FORM GST SPL-03 within three months from the date of receipt of the said application and shall also give the applicant an opportunity of being heard.

(9) On receiving the notice under sub-rule (8), the applicant may file a reply to the said notice on the common portal in FORM GST SPL-04, within a period of one month from the date of receipt of the said notice.

(10) If the proper officer is satisfied that the applicant is eligible for waiver of interest and penalty as per section 128A, he shall issue an order in FORM GST SPL-05 on the common portal accepting the said application and concluding the proceedings under section 128A.

(11) In cases where the order in FORM GST SPL-05 is issued by the proper officer under sub-rule (10).–

In respect of an application filed in FORM GST SPL-01 pertaining to a notice or statement referred to in clause (a) of sub-section (1) of section 128A, the summary of order in FORM GST DRC-07 as per sub-rule (5) of rule 142 shall not be required to be issued by the proper officer, in respect of the said notice or statement;

In respect of an application filed in FORM GST SPL-02 pertaining to an order referred to in clause (b) or clause (c) of sub-section (1) of section 128A, the liability created in the part II of Electronic Liability Register, shall be modified accordingly.

(12) If the proper officer is not satisfied with the reply of the applicant, the proper officer shall issue an order in FORM GST SPL-07 rejecting the said application.

(13) (a) In cases where notice in FORM GST SPL-03 has not been issued, the proper officer shall issue the order under sub-rule (10) within a period of three months from the date of receipt of the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be.

(b) In cases where notice in FORM GST SPL-03 has been issued, the proper officer shall issue the order in sub-rule (10) or sub-rule (12) within a period of three months from the date of receipt of reply of the applicant in FORM GST SPL-04, or within a period of four months from the date of issuance of notice in FORM GST SPL-03 where no reply is received from the applicant.

(14) If no order is issued by the proper officer within the time limit specified in sub-rule (13), then the application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be, shall be deemed to be approved and the proceedings shall be deemed to be concluded.

(15) (a) In cases where no appeal is filed against the order in FORM GST SPL-07 within the time period specified in sub-section (1) of section 107, the original appeal, if any, filed by the applicant against the order mentioned in clause (b) or clause (c) of sub-section (1) of section 128A, and withdrawn for filing the application in FORM GST SPL-02 in accordance with sub-section (3) of section 128A, shall be restored.

(b) In cases where an appeal is filed against the order in FORM GST SPL-07 for rejection of application for waiver of interest, or penalty, or both, if—

The appellate authority has held that the proper officer has wrongly rejected the application for waiver of interest, or penalty, or both, in FORM GST SPL-07, the said appellate authority shall pass an order in FORM GST SPL-06 on the common portal accepting the said application and concluding the proceedings under section 128A; or

The appellate authority has held that the proper officer has rightly rejected the application for waiver of interest, or penalty, or both, in FORM GST SPL-07, the original appeal, if any, filed by the applicant against the order mentioned in clause (b) or clause (c) of subsection (1) of section 128A, and withdrawn for filing the application in FORM GST SPL-02 in accordance with sub-section (3) of section 128A, shall be restored, subject to condition that the applicant files an undertaking electronically on the portal in FORM GST SPL-08, within a period of three months from the date of issuance of the order by the appellate authority in FORM GST APL-04, that he has neither filed nor intends to file any appeal against the said order of the Appellate Authority.

(16) In cases where the taxpayer is required to pay an additional amount of tax liability as per the second proviso to sub-section (1) of section 128A, and such additional payment is not made within the time limit specified in the said proviso, the waiver of interest, or penalty, or both, under the said section as per the order issued in FORM GST SPL-05 or FORM GST SPL-06, if any, shall become void.

(17) In cases where the taxpayer is required to pay any amount of interest, or penalty, or both, in respect of any demand pertaining to erroneous refund or on account of demand pertaining to the period other than the period mentioned in sub-section (1) of section 128A, and the details of such amount have been mentioned in FORM GST SPL-05 or FORM GST SPL-06, the applicant shall pay the said amount of interest, or penalty, or both, within a period of three months from the date of issuance of the order in FORM GST SPL-05 or FORM GST SPL-06, as the case may be, and where the said amount is not paid within the said time period, the waiver of interest, or penalty, or both, under section 128A as per the order issued in FORM GST SPL-05 or FORM GST SPL-06, shall become void.

Another tax expert said, “Now that procedural part of the amnesty scheme is already out and in the public domain it should be widely published among the masses so that the ignorant tax payer and public can take benefit of it and get the wrong full penalty and interest reversed. At the same time knowledge of such amnesty scheme amongst taxpayers will help them avoid getting robbed by the unscrupulous officers who may take the advantage of this situation and pass the orders as per the scheme but simultaneously asking for alms in lieu of favouring the taxpayer by dropping interest and penalties.”

The Government has introduced Form GST SPL-01 and SPL-02 for allowing asssesees to apply for availing the benefit of Amnesty Scheme along with Forms SPL – 03 to SPL – 07 for regulating such application through issuance of Show Cause Notices and Orders either confirming or rejecting the request for availing such benefit. Albeit the procedure is compliance heavy, however, it will ensure effective conclusion of proceedings arising out of Section 128A of the CGST Act. However, it must be noted that the Amnesty Scheme does not extend its benefit to cases arising out of demand of erroneous refund along with interest and penalty,” he said.

“The Government notified the rules and the forms applicable for waiver of the above relief on 8th October. To claim the relief, the taxpayer has to submit Form GST SPL – 01 providing the details of the notice, the tax demands and the years to which they pertain, payment details and a declaration that no writ or appeal has been filed against the said notice. If any appeal has already been filed and an order has been issued under the appeal, the taxpayer is required to submit Form GST SPL-02. It is important to note that the full tax as demanded (other than interest and penalty) should have been paid before filing the forms for the waiver of interest and penalty. Once the forms are filed, the concerned officer will review and approve the form after which the interest and penalty would stand waived. The Government has structured the process significantly for this waiver. In my opinion, the waiver should have been straight forward such as in the case of waiver of penalty if the tax is paid before issue of final demand order. The current process is quite cumbersome requiring proper details to be compiled and submitted which have the risk of being rejected by the officer if the information is not correct,” he said.

New Amnesty Scheme 2024: Rebate of Tax and Settling Outstanding Demands

The State Government of Rajasthan has notified the “Amnesty Scheme-2024” under the Rajasthan Goods and Services Tax Act, 2017. This scheme, in force until 31.07.2024, offers rebate of tax and settlement of outstanding demands and disputed amounts. It applies to dealers and persons with outstanding demands or disputed amounts up to 30.06.2017, excluding certain cases. The scheme outlines various definitions, benefits, conditions, and procedures for availing them. It provides a detailed explanation and provisions for cases pending under the Amnesty Scheme-2023. For further details, you can download the full document here.

In exercise of the powers conferred by sub-section (2A) of section 174 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government being of opinion that it is expedient in public interest so do, hereby notifies the following “Amnesty Scheme-2024”, hereinafter referred to as the scheme, for rebate of tax and settlement of outstanding demands and disputed amounts, namely:

  1. Short title and operative period.– (1) This scheme may be called Amnesty Scheme-2024.

(2) This scheme shall come into force with immediate effect and shall remain in force upto 31.07.2024.

  1. Application.- This scheme shall be applicable to all dealers or persons having outstanding demands or disputed amounts under any Act in respect of period upto30.06.2017, except outstanding demand or disputed amount pertaining to Rajasthan Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956 in respect of goods included in the Entry 54 of the State List of the Seventh Schedule to the Constitution of India.
  2. Definitions.- (1) In this scheme, unless the subject or context otherwise requires,

(a) “Act” means any of the following Acts:

(i) The Rajasthan Sales Tax Act, 1954 (Act No. 29 of 1954);

(ii) The Rajasthan Sales Tax Act, 1994 (Act No. 22 of 1995);(iii)The Central Sales Tax Act, 1956 (Central Act No. 74 of 1956):

(iv) The Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003);(v) The Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 (Act No. 13 of 1999);

(vi) The Rajasthan Tax on Entry of Motor Vehicles into Local Areas Act, 1988 (Act No. 14 of 1988);(vii) The Rajasthan Entertainments and Advertisements Tax Act, 1957 (Act No. 24 of 1957);

(viii) The Rajasthan Tax on Luxuries (in Hotels and Lodging Houses) Act, 1990 (Act No. 9 of 1996); and

(ix) The Rajasthan Tax on Luxuries (Tobacco and its Products) Act, 1994 (Act No. 11 of 1994);

(b) “Applicant” means any dealer or person who conveys his willingness for availing benefit under this scheme;

(c) “Assessing Authority” means any officer or authority appointed undere Act;

(d) “Dealer” means any dealer as defined under the Act:

(e)”Declaration Form” means the statutory formcertificate prescribed under theAct for sale or purchase of goods at concessional rate of tax or exemption fromtax;

(f)”Demand and Collection Register (DCR)” means the register containing thedetails, in the form of entries, of outstanding demand(s) pertaining to anyassessmentthe ward level either on departmental portal orphysical form;(g) “Department” means the Commercial Taxes Department, Rajasthan;

(h) “Difference Tax” means difference between full rate of tax applicable in State under the Act and concessional rate exemption which is applicable on submission of declaration form;

(i) “Disputed Amount” means any tax, interest, fee penalty for which any show cause notice has been issued or against which an appeal, revision, writ petition or special leave petition is pending or contemplated including that pertaining to cases which have been remanded by any authority;

(j) “Final amount” means the amount of outstanding demand or disputed amount which the assessing authority determines after adjustment/ rectification/ reassessment etc., if any;

(k) “Outstanding Demand” means any demand pertaining to the Act, which ispendingthe Demand and Collection Register; and

(1) “Tax” shall include the composition amount or lump sum lieu of tax and exemption fee.

(2) The words and expressions used in this scheme but not defined shall have thesame meaning as assigned to themthe Act to which the outstanding demand ordisputed amount pertains.

  1. Benefits under this scheme.- The rebate of tax and waiver of interest, penalty or fee shall be to the extent as mentioned in column number 4 of the Table given below on fulfilment of conditions as mention in column number 3, for the category of outstanding demand or disputed amount as mentioned in column number 2 of the said table and the conditions mentioned in clause 5 of this scheme:

Explanation:

(1) Where any dealer conveys his willingness for availing benefit of this scheme and depositsthe required amount upto 31.07.2024 or within ten days from the day on which the assessingauthority conveys the final amount required to be paid under this scheme, whichever is later,he shall be eligible for the benefits available in the scheme. In case, the dealer fails to depositthe final amount in the time specified above, he shall not be eligible for any benefit under thisscheme. However, the Commissioner may, if he is satisfied that the applicant was preventedby sufficient cause from paying the required amountthe stipulated time, condone suchdelay and may allow the applicant to avail the benefits under this scheme.

(2) Where any amount has been deposited prior to issuance this scheme against the demand after its creation, including the amount deposited for filing of an appeal, and if optionis being submitted for the balance outstanding demand/ disputed amount, the amount already deposited, if not adjusted in the Demand and Collection Register (DCR) prior to the issuance of this scheme and if not specifically mentioned in the challan, shall be adjusted firstly against the liability of tax, then it shall be adjusted against the liability of interest, penalty andlate fee, respectively. However, if any amount has been deposited in compliance of any courtorder, it shall be adjusted accordingly. The benefits of this scheme shall be available only forthe balance of outstanding demand/ disputed amountper the provisions of this scheme.

(3) Whereoutstanding demand or disputed amount comprises entirely of interest and/ orpenalty and/ or late fee, in such cases, the amount of tax shall be deemedhave beendeposited.

(4) For category of outstanding demand or disputed amount wheredealer or person is notrequired to deposit any amount as per the Table above, in such cases, he may convey thesame to the Assessing Authority. In cases where no intimation is received from the dealerperson, the assessing authority may proceed to dispose the case at his own level.

(5) Where the outstanding demand or disputed amount pertaining to the period upto30.06.2017 has already been deposited and demand for interest pertaining to the same isleviable but not levied, in such cases the interest payable alongwith the interest accrued uptothe date of order under this scheme shallwaived to the extent -the Table above.

Where any application for adjustment/ rectification/ reassessment etc. related to thedemand, for which the dealer or person intends to opt under this scheme is pending before theassessing authority concerned, thenintimation in writing from dealer or person, he shalldispose it on priority basis.

(7) In cases pertaining to disputed amount for which the demand is not outstanding in theDemand and Collection Register (DCR), the amount of tax, interest, late fee and/ or penaltyshall be deemed to be as per the original assessment/ reassessment order or show cause noticeissued in regard of the said disputed amount. In such cases,assessing authority concernedshall withdraw the proceeding, if any, pending before himself or submit an application forwithdrawal of the case pending before any Court or Tax Board or Appellate Authority, as thecase may be, after deposit of prescribed amount as per the Table above, within the stipulatedtime.

(8) Where the case of prosecution has been filed section (1) of section 67 of the Rajasthan Value Added Tax Act, 2003similar provisions of the repealed Act(s) and the applicant has deposited the amount as required under this scheme, the assessing authority shall proceed to withdraw the case from the court. the department under clause (d) of sub

  1. Conditions.- The benefits of this scheme shall be available on the fulfillment of thefollowing conditions, namely:

(i) The applicant has deposited the amount required as per column number 3 of theTable above and as per Explanation (1) to clause 4 above;

(ii) The applicant has submitted an undertaking for withdrawal of case, if any,pending before any Court or Tax Board or Appellate Authority, as the case maybe, within the operative period of this scheme; and

(iii) No refund for any year or regarding any Act shall belowed if it is co-related inany manner due to rebate of tax and/ or waiver under this scheme.

  1. Procedure for availing benefit.- (1) To avail the benefit under this scheme, theapplicant shall electronically convey his willingness on the Commercial Taxes Department’swebsite http://www.rajtax.gov.in regarding the samethe concerned Assessing Authority.

(2) Separate intimation of willingness shall be conveyedoutstanding demand/ disputedamount under separate Acts as wellbefore separate Assessing Authorities.

(3) In case of any dealer or person opting for benefits under this scheme, the Assessing Authority shall electronically convey the details of pending demand(s) and disputed amount(s) against dealer or person along with the payment to be made in pursuance of this scheme and consequent benefits to be accrued.

(4) The detailed procedure, clarification and order for removal of difficulties,any, foravailing benefit under this scheme shall be as notified by the Commissioner, CommercialTaxes Department, Rajasthan.

(5) In case of any dispute regarding the categorization of outstanding demanddisputedamount under serial number 1 to 3 of the Table above, the decision of Commissioner,Commercial Taxes shall be final.

  1. Provisions for cases pending under Amnesty Scheme-2023.– (1) Where a dealerhas opted for payment in instalments under Amnesty Scheme-2023 and has paid anyinstalment, such cases shall be governed by the provisions of the said scheme of 2023.

(2) In all other cases not covered under sub-clause (1) above, in which any task is pendingunder Amnesty Scheme-2023 prior to the issuance of this scheme, willingness submittedundersaid scheme of 2023 shalldeemedhave been submitted under this scheme andamount required to be paid shall be communicated afresh to the dealer as per the Table of thisscheme. The amount deposited, if any, under Amnesty Scheme-2023 shall be adjusted againstthe amount required to be paid as per the Table of this scheme..

(3) No refund of any payment already made under Amnesty Scheme-2023 shall be alloweddue to rebate of tax and/or waiver under this scheme.

Amnesty Scheme-2024Download