Under Section 128A, the GST Amnesty Scheme allows taxpayers to pay off unpaid taxes for the 2017–18 and 2019–20 fiscal years without incurring interest or penalties. Since the deadline for full payment of the contested tax is March 31, 2025, it is imperative that you move quickly in order to take advantage of this scheme.

Qualifications:

Applicable Period: From July 1, 2017, to March 31, 2020, the program covers tax demands made under Section 73 (relating to non-fraudulent instances).

Exclusions: This amnesty is not available for demands pertaining to fraudulent cases (Section 74), self-assessed taxes, or incorrect refunds.

How to Take Advantage of the Amnesty:

Withdraw Pending Appeals: Prior to requesting amnesty, any pending appeals pertaining to the tax demand must be removed. It is necessary to prepare documentation attesting to the withdrawal for submission.

Full Payment of Tax Dues: Make sure that by March 31, 2025, the whole amount of the contested tax is paid. The waiver of interest and penalties is contingent upon this payment.
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Fill out the application forms: Once the payment has been made, submit the relevant application:

Form GST SPL-01: For cases where a notice or statement has been issued but no adjudication order has been passed.

Form GST SPL-02: For cases where an adjudication order has been issued, or for multiple periods or erroneous refunds.

These forms are available on the GST portal. The application must be submitted within three months from the date of payment, i.e., by June 30, 2025.

Crucial Deadlines:

The deadline for completing the payment of the contested tax in order to be eligible for the waiver is March 31, 2025.

The application form (GST SPL-01 or SPL-02) for the waiver must be submitted by June 30, 2025.

Other Things to Think About:

Input Tax Credit (ITC): Unless there is a reverse charge or an incorrect refund, in which case cash payment is required, taxpayers may use the available ITC to pay taxes.

Waiver Scope: Only interest and penalties related to the designated tax demands are waived. Penalties and late fees that are not protected by Section 73 are still due.

In order to successfully settle past GST obligations and prevent further financial strains, taxpayers must follow the specified procedures and due dates. To guarantee compliance and proper execution of the scheme’s terms, it is advisable to seek advice from a tax professional.