India's GST Amnesty Scheme 2024: “No Penalty, no Interest – just pay tax and amnesty gives you a clean slate!”

published on 4 March 2024 | reading time approx. 3 minutes

In order to reduce the quantum of accumulated litigations and help taxpayers resolve their past GST-related disputes, the Central Board of Indirect Taxes and Customs (“CBIC”) has introduced a one-time GST Amnesty Scheme with effect from 1 November 2024 to provide for waiver of interest or penalty or both, relating to demands under Goods and Service Tax, 2017 for Financial Years (FY) 2017-18, 2018-19 and 2019-20, subject to certain conditions. By availing the scheme, a wide range of taxpayers can regularize their past tax dues with reduced financial exposure and avoid prolonged litigation.

Who can benefit from Amnesty Scheme?

Taxpayers who had received statements/notices/orders under Section 73 (non-fraudulent cases) of the Goods and Services Act, 2017 for the FY 2017-18 to FY 2019-20.
Taxpayers who had received notice initially under Section 74 (fraudulent cases) of the Goods and Services Tax, 2017 and later order is passed or required to be passed under Section 73 by the proper officer in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court.

Who are excluded from benefit of Amnesty Scheme?

Interest or Penalty for delay in filing of returns or delayed reporting of any supply in the GST return as such interest is related to demand of interest on self-assessed liability.
Interest and Penalty has already been paid.
Appeal has been filed but not withdrawn.
Cases involving recovery of refund erroneously sanctioned by the GST authorities.
Demand of integrated tax charged on import of goods under the Customs Act, 1962.

Conditions to avail Amnesty Scheme:

Waiver of interest or penalty or both is only applicable when full amount of tax demanded in the notice/statement/order is paid on or before 31 March 2025.
Withdraw an appeal or writ petition if any filed before Appellate Authority or Appellate Tribunal or a court.

Overview of the GST Amnesty Scheme Process:

These timelines provide adequate time to the taxpayers to avail the benefits under the Amnesty Scheme while encouraging them to regularize GST defaults without hefty interests and penalties

Key Considerations of Amnesty Scheme:

Tax demand can be paid either by cash or credit subject to certain exceptions.
All or Nothing Condition – taxpayers must pay entire outstanding tax demand to avail benefit of waiver, leaving no room for partial payments and dispute the rest.

What is the last date to avail benefit under Amnesty Scheme?

Last date to pay the disputed tax amount is 31 March 2025.
Last date to file application for waivers is 30 June 2025.
In case of notices/orders under Section 74, where later order is passed or required to be passed under Section 73, application can be filed within 6 months from the date of communication of order under Section 73.

Points for consideration:

For ongoing GST litigation which are not reflected on GST Portal, can taxpayer avail benefit of amnesty? If yes, what about procedural challenges?
Admissibility of input tax credit on GST liability paid on inward supplies under Amnesty Scheme?
Will the taxpayer be required to pay entire tax demand plus any applicable interest and penalties, if their appeal under the amnesty scheme is rejected, or can they continue to litigate?
Will it involve interaction with tax authorities or it would be faceless assessment?
If tax liability mentioned in the order is discharged through Form GSTR 3B, can taxpayer avail benefit of amnesty? If yes, what about procedural challenges?
Taxpayers with suspended GST registration, can they avail benefit of Amnesty scheme?

Have you already availed benefits of GST Amnesty Scheme? If not, don’t wait, the deadline is approaching. Taxpayers to evaluate whether they can benefit from the Amnesty Scheme? If yes, how can one optimize?