The GST Amnesty Scheme 2024, introduced via Section 128A of the CGST Act, provides taxpayers with an opportunity to clear past tax liabilities without paying interest or penalties for FY 2017-18, 2018-19, and 2019-20 under Section 73. The scheme comes as a major relief for businesses facing tax demands and aims to reduce litigation and facilitate compliance.
To avail the benefit, taxpayers must fully pay the outstanding tax dues by March 31, 2025. However, certain conditions and exclusions apply, making it essential to evaluate the risks, procedural requirements, and financial implications before opting in.
Key Features of the GST Amnesty Scheme
| Feature | Details |
|---|---|
| Applicable Financial Years | FY 2017-18, 2018-19, and 2019-20 |
| Applicable Sections | Section 73 (Non-fraudulent cases) |
| Benefits | Waiver of Interest & Penalty |
| Exclusions | Erroneous refunds, self-assessed interest on late returns |
| Payment Deadline | March 31, 2025 |
| Forms to be Filed | GST SPL-01 / GST SPL-02 |
| Payment Mode | ITC (except for reverse charge and erroneous refunds, which require cash) |
Illustration: Understanding the Benefits
Example 1: A Business with Pending Tax Liability
Scenario: XYZ Pvt. Ltd. received a tax demand notice for ₹10 lakh for FY 2018-19 under Section 73, along with ₹2 lakh interest and ₹1 lakh penalty.
Before Amnesty Scheme:
Total payable = ₹10 lakh (tax) + ₹2 lakh (interest) + ₹1 lakh (penalty) = ₹13 lakh
After Opting for Amnesty Scheme:
XYZ Pvt. Ltd. pays ₹10 lakh by March 31, 2025.
₹3 lakh (interest & penalty) is waived.
Total savings = ₹3 lakh.
Example 2: A Taxpayer with an Erroneous Refund
Scenario: ABC Traders claimed an incorrect ITC refund of ₹5 lakh in FY 2017-18 and received a demand notice under Section 73.
Before Amnesty Scheme:
ABC Traders had to pay ₹5 lakh (tax) + ₹1 lakh (interest) + ₹50,000 (penalty) = ₹6.5 lakh.
Under Amnesty Scheme:
Erroneous refunds are excluded, so the taxpayer must pay the full amount (₹6.5 lakh) to settle the demand.
Conclusion: While standard tax demands qualify for interest and penalty waiver, erroneous refunds do not. Taxpayers must assess their liabilities carefully.
Eligibility & Exclusions
Who Can Apply?
✔️ Taxpayers with pending tax dues under Section 73. ✔️ Those willing to withdraw pending appeals and pay the full tax amount before March 31, 2025. ✔️ Businesses with multiple demands must file separate forms (GST SPL-01 / GST SPL-02) for each order.
Who Cannot Apply?
❌ Taxpayers with fraudulent cases under Section 74. ❌ Demands related to erroneous refunds, late return filings, and reverse charge payments. ❌ Cases where only interest or penalties are due, but tax has already been paid.
Step-by-Step Process to Avail the Amnesty
| Step | Action Required |
| Step 1 | Identify pending tax liabilities for FY 2017-18 to 2019-20 under Section 73. |
| Step 2 | Withdraw any pending appeals related to the demand and obtain proof of withdrawal. |
| Step 3 | Calculate and pay the outstanding tax amount before March 31, 2025. |
| Step 4 | File GST SPL-01 / GST SPL-02 with supporting documents, including proof of payment. |
| Step 5 | Await verification and final approval from the tax authorities. |
Clarifications Issued by CBIC
Frequently Asked Questions (FAQs)
| Question | Clarification |
| Can I get a waiver if I already paid the tax before the scheme was introduced? | Yes, payments made before the scheme’s introduction will qualify if they meet the eligibility criteria. |
| Can interest and penalty already paid be adjusted against tax dues? | No, amounts paid as interest or penalty cannot be adjusted. |
| Can the waiver apply to IGST and Compensation Cess? | Yes, provided the taxpayer pays the full tax amount. |
| Can I apply if my tax was recovered from another person? | Yes, if the amount was recovered by the tax officer on behalf of the taxpayer. |
| Is partial tax payment allowed under this scheme? | No, the full tax amount must be paid to avail benefits. |
Challenges & Considerations
While the GST Amnesty Scheme 2024 offers substantial relief, taxpayers must consider the compliance burden and procedural hurdles:
✔️ Strict Deadline: Limited time until March 31, 2025. ✔️ Appeal Withdrawal Requirement: Taxpayers must withdraw appeals before applying. ✔️ Verification Process: Payments and applications are subject to multiple levels of scrutiny. ✔️ Limited Scope: Certain tax demands, such as erroneous refunds and reverse charge, are excluded.
Conclusion & Recommendations
The GST Amnesty Scheme 2024 is a golden opportunity for businesses to clear past tax liabilities without additional financial burden. However, due to the strict procedural requirements and exclusions, taxpayers should:
🔹 Analyze their pending liabilities thoroughly. 🔹 Consult a tax expert to evaluate the benefits and risks. 🔹 Ensure timely payment before the March 31, 2025 deadline. 🔹 Keep all necessary documentation ready to avoid delays in processing.
Given the tight timeline and procedural hurdles, it is recommended that the GST Council consider extending the deadline and broadening the scope of the scheme to include a wider range of cases.
If you have outstanding GST dues for FY 2017-18 to 2019-20, this scheme can save you substantial amounts in interest and penalties. Act now, evaluate your tax status, and take the necessary steps to benefit from this limited-period amnesty! ✅
