The GST Amnesty Scheme is a one-time window allowing GST-registered taxpayers to resolve past dues—returns, tax liabilities, interest, or penalties—by availing partial or full waiver under specific conditions. It’s governed by Section 128A of the CGST Act and related rules .
Key timelines:
- Scheme effective: from November 1, 2024
- Tax payment deadline: by March 31, 2025
- Waiver application: by June 30, 2025
Benefits of the Scheme
- Interest & penalty waiver
- For demands under Section 73 related to FY 2017–18 to 2019–20 .
- End litigation & appeals
- Requires withdrawal of any pending appeals (APL‑01/02 forms). Can ease dispute resolution burdens .
- Boosts voluntary compliance
- Offers relief from heavy late fees, incentivizing taxpayers to clear past liabilities .
- Improve business continuity
- Helps restore or maintain GST registration, avoiding cancellation due to non-compliance .
Who Is Eligible?
- GST-registered taxpayers with demand notices/orders under Section 73 (non-fraud),
related to FY 2017–18, 2018–19, and 2019–20 . - Must pay full tax dues by the deadline and withdraw any appeals before applying .
- Fraudulent cases under Section 74 or writ petitions are excluded .
How to Avail It
- Pay outstanding tax dues by March 31, 2025.
- Withdraw appeals (if any), providing screenshots as proof .
- File waiver application online—Form SPL‑01/SPL‑02—by June 30, 2025 .
- Await CBIC/State clearance to confirm waiver.
- Compliance restored: litigation closed, fewer compliance hurdles.
Challenges & Limitations
- Complex eligibility
- Only specific periods and demand types covered; incorrect selection leads to rejection .
- Portal glitches
- Technical issues while filing waiver/SPL forms, especially for small firms .
- Strict deadlines
- Missing payment or application deadline means losing amnesty benefits .
- ITC restrictions
- Retroactive Input Tax Credit claims not covered; ITC compliance unaffected by scheme .
- Appeals must be formally withdrawn
- Evidence required; delays can result in ineligibility .
- Limited scope
- Doesn’t include late GSTR-1 filings, Section 74 (fraud), or new tax demands beyond specified years .
Real-World Developments
- Delhi exploring pre-GST tax amnesty to resolve legacy cases, aiming to recover ₹5,500–6,000 cr and reduce litigation .
- Kerala’s state-level amnesty (Apr–Jun 2025) helped bar hotels and traders clear arrears, recovering millions .
Final Takeaway
The GST Amnesty Scheme offers a meaningful chance to clear old tax dues, ditch penalties, and resolve disputes peacefully. But success depends on strict timing, accurate filings, and technical compliance. It’s a useful but limited opportunity—missing deadlines or wrong forms could mean no relief.
