GST Amnesty Scheme 2024 – Ongoing Litigations | Clarifications | Way-forward

The GST Amnesty Scheme is a government initiative designed to offer relief to taxpayers by allowing them to settle any outstanding Goods and Services Tax (GST) liabilities with reduced or waived penalties. This type of scheme is typically launched to encourage taxpayers to come forward and clear their dues without the fear of heavy penalties or legal action.

Table of Contents

1. Section 128A of CGST ACT 2017
2. 54th GST Council Meeting Recommendation
3. Section 128 A (1)(a)/(b)/(c)
4. Guidelines Circular 238/32/2024 dt 15.10.2024
5. Application Under Section 128A
6. Forms SPL 01 and 02
7. Appeal is Filed or a Writ Petition is Filed
8. Payment of Tax
9. Reduced Demands due to Section 16(5) & (6)
10. Processing Application
11. Appeals on Orders of SPL 05 and 07
12. Forms

By Hunny Munjal – Chartered Accountant

1. Section 128A of CGST ACT 2017

• 53rd Meeting of GST Council – S 128A inserted through S. 146 of FA 2024 w.e.f. 1.11.2024
• Waiver of interest and penalty
• Demands under Section 73
• Periods Covered – FY 2017-18, FY 2018-19, FY 2019-20

2. 54th GST Council Meeting Recommendation

• Rule 164 inserted w.e.f. 1/11/2024 Notfn 20/2024 dt. 8.10.2024 procedure provided under Rule 164 of CGST Rules
• Notification 21/2024 dt 8.10.2024
• Full payment of the tax by 31.3.2025

3. Section 128 A (1)(a)/(b)/(c)

1. S 128 A (1)(a) – Notice issued but no order passed
   Form GST SPL –01
2. S 128 A(1) (b) – Order is issued but no appellate/revision order is issued u/s 107 or 108
   Form GST SPL –02
3. S 128 A (1) (c) – Appellate order issued but no tribunal order
   SPL 02

4. Guidelines Circular 238/32/2024 dt 15.10.2024

• Filing Application – Notice or Statement s73(1), 73(3) But no order under section 73(9)
• Order u/s 73 (9) – But no appellate order u/s 107 (11) or 108 (1)
• Order u/s 107(11) or S 108 (1) – But no order of appellate tribunal

Notice originally issued u/s 74 – Order passed/required to be passed u/s 73 as per provisions of Sec 75(2)

5. Application Under Section 128A

• Appellate authority directs to determine the tax under 73 for demand issued u/ s 74
• 6 months from the date of determination of tax u/s 73 by proper officer
• Scheme not applicable to erroneous refunds (128A (2))
• Appeal or WP pending needs to be withdrawn (128A (3))

6. Forms SPL 01 and 02

• Within three months from 31.3.2025 (after payment of tax in notice, demand or order)
• If notice under 74 is directed to be decided u/s 73 by appellate authority Spl 02 within 6 months from communication of such order

7. Appeal is Filed or a Writ Petition is Filed

TP to withdraw appeal or WP

Before filing SPL 01 or 02

• Enclose the order of withdrawl
• If withdrawl order not received
  • Enclose copy of application for withdrawl
  • Upload final order within one month of receipt of such order

8. Payment of Tax

• 128 A (1) (a) – DRC 03
• 128 A (1) (b) (c) – payment in debit entry in ELR (electronic liability register )

1. 1. Circular 224/18/2024 – GST d t11.7.2024
   2. If already paid in DRC03 – procedure R 142(2B) applies

9. Reduced Demands due to Section 16(5) & (6)

• The ITC denied earlier but available now, no application for rectification need to be filed
• The deducted amount should be only denied ITC on account of 16 (4)

10. Processing Application

1. Proper officer u/s 73 is proper officer for FORM GST SPL01
2. Proper officer u/s 79 is proper officer for FORM GST SPL02
3. If need to be rejected

• • Notice within three months SPL 03
  • Reply of TP – SPL 04
  • PH opportunity

Orders u/s 128A – SPL-05 & 07

1. GST SPL 05 – Accept the Application
2. SPL 07 – reject the Application
3. Time limit – R 164 (13)
4. If not issued within time limit: SPL 01, SPL 02 are deemed to be accepted – SPL 05 gets generated in the portal

After Acceptance of Application

• SPL 01 Accepted: No DRC 07 need to be issued
• SPL 02 accepted: Part II of ELR stands modified

11. Appeals on Orders of SPL 05 and 07

• No appeal on SPL 05 u/s 107
• Appeal on SPL 07 – S 107

1. 1. APL 01
   2. No pre deposit, normally.
   3. But amount paid is less than required pre-deposit, remaining amount shall be paid as pre-deposited

• Appeal only on waiver of interest and penalty and not on merits

If Appeal allowed,

• Appellate authority shall pass SPL 06
• If SPL02 rejected u/ SPL 07, the same is upheld in APL 04 by appellate authority
• If appellate authority sets aside SPL07 and issues SPL06 granting the benefit, then no appeal shall lie on order in SPL06

Appeal not filed

In time limit u/s107(1) – Original Appeal Gets Restored

12. Forms

• GST SPL 01 – Application 128a (1)(a)
• SPL02 – Application 128a (1) (b)(c)
• SPL03 – SCN for rejection
• SPL04 – Reply to SCN
• SPL05 – Acceptance of application and closure of proceedings
• SPL06 – Order by appellate authority accepting application
• SPL07 – Rejection order by proper officer
• SPL08 – Undertaking by TP that he would not file any appeal on rejection order which restores his original appeal