No Interest, No Penalty for FY 2017-18, 2018-19, and 2019-20
This guide explains the GST Amnesty Scheme 2024 in detail with illustrations and case studies to help taxpayers understand its impact and benefits.
The GST Amnesty Scheme 2024, introduced under Section 128A, allows taxpayers to clear tax dues from FY 2017-18 to 2019-20 without paying interest or penalties.
However, it does not cover erroneous refunds, self-assessed interest, and certain penalties. The full tax amount must be paid by March 31, 2025 to avail of the waiver.
This guide provides:
✅ Eligibility & exclusions
✅ Step-by-step procedure
✅ Illustrative case studies
✅ Filing process for SPL Forms (SPL-01 & SPL-02)
✅ Common clarifications by CBIC
✅ Strategic considerations for taxpayers
Summary of the GST Amnesty Scheme 2024
| Particulars | Details |
|---|---|
| Scheme Introduced Under | Section 128A of CGST Act |
| GST Council Approval | 53rd GST Council Meeting |
| Period Covered | FY 2017-18, 2018-19, 2019-20 (July 1, 2017 – March 31, 2020) |
| Scope of Waiver | 100% waiver of interest & penalties for tax demands under Section 73 |
| Deadline for Tax Payment | March 31, 2025 |
| Exclusions | Erroneous refunds, self-assessed interest, and late fees |
| Forms to be Filed | GST SPL-01 or SPL-02 |
| Appeal Withdrawal Required? | Yes, taxpayers must withdraw pending appeals before applying |
Eligibility & Exclusions (With Case Studies)
✅ Eligible Cases for Amnesty
✔️ Tax demands under Section 73 for FY 2017-18 to 2019-20
✔️ Cases where tax is unpaid, but interest & penalties are outstanding
✔️ IGST, CGST, SGST, and Compensation Cess
🔹 Case Study 1: Eligible for Amnesty
📌 XYZ Pvt. Ltd. received a GST demand of ₹10 lakh (₹8 lakh tax + ₹2 lakh interest & penalty) for FY 2018-19.
✅ If they pay ₹8 lakh (tax amount) before March 31, 2025, the ₹2 lakh interest & penalty will be waived.
✅ They save ₹2 lakh under this scheme.
❌ Exclusions – Who is NOT Eligible?
| Exclusion | Details |
|---|---|
| Erroneous Refunds | If a demand includes an erroneous refund, full tax + interest + penalty must be paid before availing the waiver. |
| Late Filing Interest | Self-assessed interest due to late GST return filing is not waived. |
| Other Penalties & Late Fees | Waiver applies only to penalties under Section 73. Other penalties (e.g., Sections 122 & 125) remain payable. |
| Partial Payments | The scheme does not allow partial payments—the full tax amount must be settled. |
🔹 Case Study 2: Not Eligible for Amnesty (Erroneous Refunds)
📌 ABC Exports wrongly received an IGST refund of ₹5 lakh.
❌ Since this is an erroneous refund, they must repay ₹5 lakh + applicable interest + penalty.
❌ No waiver is allowed under the scheme.
Step-by-Step Process for Availing the Amnesty Scheme (With Illustrations)
Step 1: Review Eligibility
✔️ Check if the tax demand is under Section 73.
✔️ Ensure it pertains to FY 2017-18 to 2019-20.
✔️ Verify that the demand does not include erroneous refunds or self-assessed interest.
🔹 Case Study 3: Checking Eligibility
📌 PQR Ltd. received a GST demand for FY 2019-20.
🔍 Their case is under Section 73, and they only need to pay the tax amount to get a waiver. ✅
Step 2: Withdraw Pending Appeals
✔️ If an appeal or writ petition is pending, it must be withdrawn.
✔️ Attach a withdrawal order to the application.
🔹 Case Study 4: Appeal Withdrawal
📌 LMN Ltd. filed an appeal against a GST demand of ₹15 lakh.
✅ They withdraw the appeal, file SPL-01, and pay ₹15 lakh tax before March 31, 2025.
✅ The interest & penalty are waived, and the case is closed.
Step 3: File Waiver Application (SPL-01 / SPL-02)
| Form | Purpose |
|---|---|
| SPL-01 | For single tax demand notices/orders |
| SPL-02 | For multiple tax demand notices/orders |
✔️ Log in to the GST Portal → Go to Amnesty Scheme Section.
✔️ Select SPL-01 or SPL-02, enter tax details, and upload supporting documents.
🔹 Case Study 5: Filing SPL-02 for Multiple Demands
📌 RST Traders has 3 pending tax demands (₹5 lakh, ₹8 lakh, ₹12 lakh).
✅ They file SPL-02, pay ₹25 lakh (total tax), and get a full waiver on interest & penalties.
Step 4: Make Full Payment of Tax Dues
✔️ Tax payment can be made using ITC (except for reverse charge & erroneous refunds).
✔️ Ensure full payment is made before March 31, 2025.
🔹 Case Study 6: Paying via ITC
📌 OPQ Pvt. Ltd. has a tax demand of ₹7 lakh but ₹6 lakh ITC available.
✅ They pay ₹6 lakh via ITC & ₹1 lakh in cash.
✅ They get waiver of ₹2.5 lakh interest & penalties.
Step 5: Verification & Approval by GST Authorities
✔️ GST officer reviews & approves the waiver.
✔️ If rejected, taxpayers must appeal within 30 days.
🔹 Case Study 7: Rejected Amnesty Application
📌 STU Ltd. filed SPL-01 but paid only 80% of the tax demand.
❌ Their waiver request was rejected as full payment was not made.
Strategic Considerations for Taxpayers
✅ Advantages
✔️ No interest or penalties – major cost savings
✔️ Closure of past disputes – reduced compliance burden
✔️ Lower scrutiny risk – better GST compliance
⚠️ Challenges
❌ Tight deadline (March 31, 2025)
❌ No waiver for erroneous refunds & self-assessed interest
❌ Partial payments not allowed
Conclusion & Recommendations
The GST Amnesty Scheme 2024 is a golden opportunity for taxpayers to clear past dues. However, due to strict conditions, businesses must:
✔️ Review pending tax demands
✔️ Plan fund flow to pay dues before March 31, 2025
✔️ Consult a GST expert for compliance
🔹 Expert Tip: File early to avoid system overload & processing delays in March 2025! 🚀
