GST Waiver Scheme Under Section 128A: What You Need to Know
The GST Council has brought some exciting news for taxpayers! To reduce tax disputes and bring relief, the Council, in its 53rd meeting held on June 22, 2024, introduced a Waiver Scheme under Section 128A. Let’s break it down for you in simple terms.
What Is the Waiver Scheme All About?
This scheme offers a waiver on interest and penalties for demand notices or orders issued under Section 73 of the CGST Act, 2017 for specific financial years—2017-18, 2018-19, and 2019-20.
Who Qualifies?
The scheme applies to cases that do not involve fraud, suppression, or willful misstatements. The key condition? Taxpayers must pay the full tax amount demanded by March 31, 2025.
New Rule in Action: Rule 164
To make this waiver scheme a reality, Rule 164 of the CGST Rules, 2017, was introduced through Notification No. 20/2024, effective from November 1, 2024. This rule outlines the steps taxpayers must follow:
- Filing Forms:
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- File FORM GST SPL-01 or FORM GST SPL-02 on the GST portal (depending on your case).
- Deadline: Applications must be submitted by March 31, 2025.
Forms Availability Timeline
- The forms GST SPL-01 and GST SPL-02 are currently under development.
- These forms are expected to go live on the GST portal by the first week of January 2025.
What Should You Do Now?
To ensure you benefit from the waiver scheme:
- Pay the Tax Amount:
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- If you’ve received a demand notice or order under Section 73, pay the tax amount before March 31, 2025.
- Use the “payment towards demand” facility for demand orders.
- For notices, pay using Form GST DRC-03.
- Link Payments to Orders (If Applicable):
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- If you’ve already paid through Form GST DRC-03, you’ll need to link it to the demand order using Form GST DRC-03A, now available on the GST portal.
Why Is This Important?
The waiver scheme is a golden opportunity to clear tax liabilities without bearing the burden of penalties or interest. By acting quickly and ensuring compliance, you can resolve disputes and avoid additional costs.
This initiative by the GST Council reflects its commitment to simplifying compliance and easing the burden on taxpayers. Don’t miss out—pay your taxes and secure your waiver before March 31, 2025!
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