GSTN Advisory on Waiver of Interest & Penalty in Demand Notices or Orders for the Financial Year 2017-18 to 2019-20.
To reduce tax disputes and provide significant relief to taxpayers, the GST Council, in its 53rd meeting on June 22, 2024, introduced a waiver scheme under U.S.128A. This scheme allows for the waiver of interest and penalties under demand notices or orders issued under Section 73 of the CGST Act, 2017 (applicable in cases not involving fraud, suppression, or wilful misstatement of facts) for financial years 2017-18, 2018-19, and 2019-20. The key condition for availing this waiver is full payment of the demanded tax by March 31, 2025.
To facilitate this, Rule 164 of the CGST Rules, 2017 was notified via Notification No. 20/2024 on October 8, 2024, with effect from November 1, 2024. This rule outlines the procedural guidelines for the waiver scheme. Taxpayers who have received a notice or order under Section 73 for the specified financial years must file an application using FORM GST SPL-01 or FORM GST SPL-02 on the GST portal within three months, before March 31, 2025.
Currently, Form GST SPL-01 and Form GST SPL-02 are in development and expected to be available on the common portal from the first week of January 2025. Until then, taxpayers are advised to pay the demanded tax amount to qualify for the waiver.
Also Read: Delhi High Court Rules Against 2 Adjudication Orders for a Single Show Cause Notice
To pay the demanded tax:
- Demand Orders: Use the “Payment Towards Demand” feature on the GST portal.
- Demand Notices: Use Form GST DRC-03 to make the payment.
If payment has already been made using Form GST DRC-03 wrongly for a demand order, the taxpayer must link this form to the demand order using Form GST DRC-03A, now available on the common portal.
Summary of GST Waiver Scheme Benefits:
- Applicable for FY 2017-18, 2018-19, and 2019-20 demand notices or orders under Section 73.
- Waiver of interest and penalties for cases not involving fraud, suppression or wilful misstatement of facts.
- Full payment of tax required to be paid by March 31, 2025.
- Forms GST SPL-01 and SPL-02 to be available by first week of January 2025.
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