GST Amnesty Scheme under Section 128A – No Interest & Penalty for FYs 2017-20 || CA (Adv) Bimal Jain

Summary

This video provides an in-depth explanation of the GST Amnesty Scheme, which covers cases from the financial years 2017-18, 2018-19, and 2019-20. The scheme offers tax payers a waiver of interest and penalties on certain non-fraudulent cases under section 73 of the GST Act. The video explains the filing process, deadlines, required forms, and payment methods, including the use of electronic credit or cash ledgers. It also discusses various scenarios in which taxpayers can benefit from the scheme, the filing of applications (SPL forms), and steps to take after receiving notices or orders.

Takeaways

• 😀 The GST Amnesty Scheme provides relief for three financial years: 2017-18, 2018-19, and 2019-20.
• 😀 Taxpayers are not required to pay any interest or penalty for non-payment or short payment of tax, except for erroneous refunds and demand raised under Section 73 in non-fraud cases.
• 😀 The GST Amnesty Scheme covers cases under Section 128 and provides a waiver of notices and statements issued under Section 73.
• 😀 Payments for cases under Section 128 need to be completed by March 31, 2025.
• 😀 Tax payments can be made via the Electronic Cash Ledger (e-Cash) or Electronic Credit Ledger (e-Credit), excluding reverse charge mechanism (RCM) liabilities.
• 😀 If the demand is related to Section 16(4), taxpayers can offset the tax liability and still receive the benefit of the scheme if they have met certain conditions.
• 😀 A rectification application for Section 16(5) or Section 16(6) is not required under the scheme as per Notification 22/2024-Central Tax.
• 😀 In case of an appeal or pre-deposit, the pre-deposit amount can be adjusted against the total tax liability.
• 😀 If the order is passed under Section 128 for cases in the favor of the taxpayer, the payment must be credited to the liability registered in the e-Ledger.
• 😀 To avail of the GST Amnesty benefits, taxpayers must file SP01 or SP02 applications based on their case (Section 73, fraud cases or appeal-related cases).

Q & A

What is the GST Amnesty Scheme and which financial years are covered under it?

The GST Amnesty Scheme is designed to offer relief to taxpayers by waiving interest and penalties for non-payment or short-payment of GST, and incorrect utilization of Input Tax Credit (ITC). It covers the financial years 2017-18, 2018-19, and 2019-20.

What are the key benefits for taxpayers under the GST Amnesty Scheme?

The main benefit under the GST Amnesty Scheme is that taxpayers are not required to pay interest or penalties for non-payment, short-payment of tax, or errors in claiming ITC, as long as the case is categorized as non-fraudulent under Section 73.

How does the process of paying tax under the GST Amnesty Scheme work?

Taxpayers can make payments under the GST Amnesty Scheme using either the e-credit ledger or e-cash ledger. Payment should be made through DRC-03 for Section 73 cases, and within specific deadlines based on the case classification (Claus A, B, or C).

What is the deadline for making payments under the GST Amnesty Scheme?

The deadline for making payments under the GST Amnesty Scheme is March 31, 2025, for cases under Section 73, where notices or appeals have not been issued or adjudicated. In cases of remanded orders, payment should be made within six months from the date the order is passed.

What forms are required to apply for the GST Amnesty Scheme?

To apply for the GST Amnesty Scheme, taxpayers need to file specific forms: SPL 01 for cases under Section 73, and SPL 02 for cases under Section 74 or Tribunal appeals. After filing these forms, further actions such as filing SPL 03 or SPL 04 might be required depending on the case's outcome.

What happens if a taxpayer has made a pre-deposit for an appeal?

If a taxpayer has made a pre-deposit for an appeal, they can offset the pre-deposit amount from their total tax liability under the Amnesty Scheme. This will reduce the amount they need to pay.

Can taxpayers use their e-credit or e-cash ledger for payments under the GST Amnesty Scheme?

Yes, taxpayers can use either their e-credit or e-cash ledger to make payments under the GST Amnesty Scheme, except in cases where Reverse Charge Mechanism (RCM) liabilities are involved.

What is the process for filing a request for waiver of interest and penalties?

To request a waiver of interest and penalties, taxpayers must file an application using SPL 01 or SPL 02, depending on the case classification. This must be done within three months of making the payment under the Amnesty Scheme.

What should a taxpayer do if the proper officer does not issue a favorable or rejection order within the prescribed timeline?

If the proper officer does not issue a favorable (SPL 05) or rejection order (SPL 07) within the prescribed timeline, the proceedings will be deemed accepted. This means that the taxpayer’s application will be considered valid, and they will be granted the benefits of the scheme.

Can taxpayers apply for the GST Amnesty Scheme if they have already paid interest and penalties before November 1, 2024?

Yes, taxpayers can still apply for the GST Amnesty Scheme if they have paid interest and penalties before November 1, 2024. However, they will not receive a refund for the interest or penalties paid before this date.