Everything You Need to Know About the GST Amnesty Scheme 2024–25

INTRODUCTION

The GST Amnesty Scheme 2024 introduced as an opportunity for the businesses and taxpayers as it will help in regulating their tax filling without the risk of penalties and interest. It helps in GST late fee waiver and work as GST interest waiver scheme. The scheme has been introduced under section 128 of the central Goods and Services Tax (CGST) Act, 2017. This scheme comes to help those who have a lot of GST dues. Under this scheme the taxpayer can outstand the tax liability just by paying principal tax amount, with a complete waiver of associated interest and penalties. By introducing such schemes government promote voluntary compliance and the hassle of long litigation process in GST cases.

THE GST AMNESTY SCHEME 2024

The Central Board of Indirect Taxes and customs (CBIC) has announced that the GST Amnesty Scheme 2024 will apply specifically to tax demands under section 73 of the CGST Act, 2017.

Section 73 deals with the cases of non-payment or short payment of GST where there is no element of fraud or misrepresentation.

The condition of the GST Amnesty scheme 2024 is that the businesses must pay the principal GST amount which is due and that too before the deadline then only there will be 100% waiver on penalties and interest. However, the scheme strictly excludes the tax demands under section 74 of CGST Act, 2017. As section 74 include factors of fraud, wilful misstatement, or suppression of facts. Businesses falling under section 74 will not be eligible to get benefit of GST Amnesty scheme 2024

Organizations seeking clarity on their eligibility and calculation of dues can rely on TMWALA, which offers expert assistance in evaluating GST notices, assessing eligibility, and navigating the process efficiently.

To get clarity about whether your business is eligible to get the benefit of GST Amnesty scheme 2024 or not, contact TMWALA.

ELIGIBILITY CRITERIA

To take advantage of the GST Amnesty Scheme 2024, businesses and taxpayers must satisfy specific conditions. The eligibility requirements are as follows:

The specific conditions must be fulfilled to get benefit of this scheme. The eligibility criteria are as follows:

• Falls under section 73:it is only applicable for those taxpayers who have received demand notice under section 73 of CGST Act,2017. Which deals with the cases involving non-payment and short payment of GST due to an error or omission. As the scheme strictly covers non fraudulent cases.
• Relevant for the financial year 2017-2018, 2018-2019 and 2019-2020: the scheme is applicable on the GST liabilities of year 2017-2018, 2018-2019, 2019-2020 and any other year apart from this is not eligible for the benefit of this scheme.
• Should not fall under Section 74: The GST for which the business is trying to get the benefit of the scheme should not fall under Section 74 as it deals with cases of fraud, willful misrepresentation or suppression of facts. So, the GST cases fall under this are excluded from getting the benefit of the scheme.
• GSTR-9 annual return: GSTR-9annual returnis that taxpayers registered under GST must file, summarizing all monthly or quarterly returns (like GSTR-1 and GSTR-3B) filed during the financial year. It includes details of outward and inward supplies, input tax credit claimed, taxes paid, and any additional liability. Filing GSTR-9 is mandatory for businesses with an annual turnover above the prescribed threshold, and late filing can attract penalties and interest. Accurate filing ensures transparency, helps in reconciling annual data, and maintains compliance with GST regulations.

TMWALA can help you understand whether your mark falls under section 73 or section 74 by evaluating your businesses GST history.

KEY BENEFITS OF THE SCHEME

The GST Amnesty Scheme 2024 provides multiple benefits to the businesses and taxpayer who are eligible for this scheme. The benefits it provides are as follows:

• 100% waiver of interest and penalties: The GST who are eligible for this scheme gets help in GST late fee waiver and work as GST interest waiver scheme. After paying the required principal GST amount. This is beneficial for the businesses that have accrued substantial liabilities over the years.
• Cost savings for small and medium sized enterprises: Small and Medium sized enterprises, which often operate in small areas or in localities, can achieve a considerate financial relief by settling their GST dues at a reduced cost under this scheme.
• Avoid future legal disputes: by clearing GST dues under this scheme, the businesses can avoid lengthy legal battles which can occur in future. This scheme can be a precautional process which will save time, legal, costs and management bandwidth.
• Protect against GST Registration cancellation: businesses GST can be cancelled due to non-compliance, which can affect the businesses reputation and operation. So to prevent that the GST Amnesty Scheme help businesses to protect their GSTIN and maintain the trade activities.
• Simplified compliance: this scheme offers a simple and non-intrusive process. There is no audit requirement whatsoever, making it easier for businesses to resolve past issues and GST dues.

This scheme makes the process streamlined and audit free, which makes it simpler than other traditional dispute resolution methods. TMWALA provides end to end support to ensure that businesses correctly take the benefit of this scheme.

IMPORTANT DEADLINES

The two deadlines related to GST Amnesty Scheme are:

1. The payment of principal tax amount: Must be completed on or before March 31, 2025.
2. Submission of required documents: Must be completed on or before June 30, 2025.

Timely action is very essential in this case TMWALA help you to do so.

• GST FILING DEADLINE EXTENSION CHALLENGES

Although GST deadline extensions for filing provide temporary relief, they can disturb compliance habits, cause delay in input tax credits, and put both the taxpayers and the GST department to inconvenience. Eventually, this can result in cash flow problems, reconciliation difficulties, and regulatory challenges if not controlled appropriately.

• GSTR-3B LATE FILING

GSTR-3B late fillingcan result in serious ramifications for taxpayers in the form of late charges, interest on outstanding tax, and possible withholding of input tax credit (ITC) claims. Chronic delays also put the business in the radar of tax officials and affect the taxpayer’s compliance rating. Filing GSTR-3B on time and correctly is the key to preventing these penalties and smooth GST functioning.

STEP-BY-STEP PROCESS TO AVAIL THE SCHEME

The GST Amnesty Scheme is a time bond process; it requires attention to documentation and timing.

• Step 1: Taxpayers must identify their outstanding liabilities first, for  the relevant financial years by reviewing GST demand notices under section 73. They should always be aware about the exact amount of principal tax.
• Step 2: The payment of principal amount must be done on or before march 31, 2025 through the GST postal using Form GST DRC-03.
• Step 3:After payment, the taxpayer must submit the appropriate application form based on the stage of the proceedings:
  • Form GST SPL-01: this form is used when the notice is issued, but no final order has been passed.
  • Form GST SPL-02: this form is used when the final order was already issues covering multiple tax period.
• Step 4: if the taxpayer had already file any appeal against tax demand, then that appeal must be formally withdrawn before applying under the amnesty scheme.
• Step 5: After all the required submissions are done, the GST department will verify all the details. Upon carefully verifying it if the department is satisfied, they will officially wave off the interest and penalty amounts, and the compliance will be updated accordingly.

LEGAL UNDERSTANDING: SECTION 73 VS. SECTION 74

Understanding the distinction between the two is very critical as it determines the eligibility whether the business can have the benefit of the scheme or not.

Section 73 relates to cases of non-payment or underpayment of GST due to unintentional errors, such as accounting mistakes or clerical omissions. These are considered non-fraudulent cases and are covered under the Amnesty Scheme.

• Section 73: Relates to the cases of non-payment or short payment of GST where there is no element of fraud or misrepresentation.
• Section 74:Relates to the cases of non-payment or short payment of GST, which include factors of fraud, wilful misstatement, or suppression of facts.

TMWALA can review your GST compliance history and help you distinguish between the section. Also determine in which section your business is falling.

CONCLUSION

The GST Amnesty Scheme 2024 is a substantial relief for taxpayers willing to clear arrears of GST due earlier without the onus of penalties and interest. It facilitates GST late fee waiver and is an effective GST interest waiver scheme, motivating businesses to comply voluntarily and sidestep lengthy litigation. Though the scheme provides temporary reprieve, it should be noted that GST filing deadline extension challenge since repeated delays can result in compliance failure and cash flow problems.

Moreover, companies should be careful regarding GSTR-3Blate filing since it will invite penalties and affect input tax credit eligibility. On-time filing of GSTR-9 annual return is also important to ensure transparency and correct annual reconciliation of the tax information.

In order to fully utilize the GST Amnesty Scheme 2024, businesses must act within the scheduled deadlines and get professional advice to ascertain eligibility and proper use.