Introduction
To reduce tax disputes and provide significant relief to taxpayers, the GST Council, in its 53rd meeting on June 22, 2024, recommended a waiver of interest and penalties for demand notices or orders issued under Section 73 of the CGST Act, 2017. This waiver applies to cases that do not involve fraud, suppression, or willful misstatement for the financial years 2017-18, 2018-19, and 2019-20. To avail of this waiver, taxpayers must pay the full tax demand on or before March 31, 2025.
Implementation of the Waiver Scheme
1. Notification & Rule Amendment
Rule 164 of the CGST Rules, 2017, was notified through Notification No. 20/2024 dated October 8, 2024, and became effective from November 1, 2024. This rule provides procedural guidelines for implementing the waiver scheme.
2. Application Process for Waiver
If a notice or order has been issued under Section 73 for financial years 2017-18, 2018-19, or 2019-20, taxpayers must:
- File an application in FORM GST SPL-01 or FORM GST SPL-02 on the common portal within three months from the notified date (March 31, 2025).
3. Availability of Forms GST SPL-01 & GST SPL-02
These forms are currently under development and will be available on the common portal from the first week of January 2025. Meanwhile, taxpayers should ensure they pay the tax amount demanded in their notice, statement, or order issued under Section 73 before March 31, 2025, to qualify for the waiver benefits.
How to Make the Payment?
Taxpayers can pay the demanded tax amount through:
- The “Payment towards Demand” facility for demand orders.
- Form GST DRC-03 for notices.
Linking Past Payments with Demand Orders
If a taxpayer has already made the payment using Form GST DRC-03 for any demand order, they must link it with the respective demand order using Form GST DRC-03A, which is now available on the common portal.
Key Takeaways
- The waiver applies only to non-fraudulent cases under Section 73 for the financial years 2017-18, 2018-19, and 2019-20.
- Full tax payment must be made by March 31, 2025 to avail of the waiver.
- Forms GST SPL-01 & SPL-02 will be available on the common portal from January 2025.
- Form GST DRC-03A is now available for linking previous payments with demand orders.
- Taxpayers should act promptly and make payments well before the deadline to avoid last-minute issues.
Application Process
- Taxpayers must file their application in either FORM GST SPL-01 or FORM GST SPL-02 on the GST portal.
- Currently, FORM GST SPL-02 is available on the GST portal.
- FORM GST SPL-01 will be made available soon.
Click here for the process of filing SPL-02 electronically.
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