[Opinion] GST Amnesty Scheme 2024 | Section 128A of CGST Act, 2017

Bhavik P. Chudasama – [2024] 168 taxmann.com 399 (Article)

1. Introduction

The Goods and Services Tax (GST) Act, 2017, provides certain provisions for taxpayers to seek relief from interest and penalty imposed on them. One such provision is Section 128A r.w.t Rule 164, which outlines the procedure and conditions for the closure of proceedings under Section 128A of the CGST Act, 2017, generally termed as “GST Amnesty Scheme“. This rule provides a much-needed respite to taxpayers who may have inadvertently defaulted on their tax obligations for the period 01st July 2017 to 31st March 2020.

2. Key Provisions of Rule 164

Rule 164 primarily deals with the waiver of interest and penalty as mentioned in Sec 128A which is recently introduced by Section 146 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024. Rule 164 which outlines the procedural aspect of the for seeking benefit from Sec 128A was notified vide Notification No. 20/2024 – Central Tax dated 08th October, 2024, which specifies the following key points:

3. Eligibility for Waiver of Interest or Penalty

• Notices or Statements mentioned in Sec 128A (1) (a): Taxpayers who have received a notice or statement under Section 73(1) CGST Act, 2017 for period 01st July 2017 to 31st March 2020, can apply for waiver of interest or penalty or both.
• Orders mentioned in Sec 128A (1) (b) and (c): Taxpayers who have received orders under Section 73(9) i.e. Order from Proper Officer or under Section 107(11) i.e. Order from Appellate Authority or under Section 108(1) i.e. Order from Revisional Authority of the CGST Act, 2017, for period 01st July 2017 to 31st March 2020, can apply for waiver.

4. Application Process

• Form GST SPL-01: This form is used to apply for waiver in respect of notices or statements under Sec 128A (1) (a) to be filed within 3 months from date of payment to be notified u/s 128A. Since the notified date of payment is 31st March 2025, technically date for filing application should be 30th June 2025
• Form GST SPL-02: This form is used to apply for waiver in respect of orders under Section 128A (1)(b) or (c) to be filed within 3 months from date of payment to be notified u/s 128A. Since the notified date of payment is 31st March 2025, technically date for filing application should be 30th June 2025.

There is only one exception in GST SPL-02 that for the Cases covered under first provision of Sec 128A(1), the time limit will be six months from the date of communication of such order