New GST amnesty: Interest and penalty waivers start Nov 1, 2024.
The Ministry of Finance notified has the rules and procedures to be followed if a GST-registered taxpayer wants to apply for the ‘conditional waiver of interest and penalty’ scheme announced in Budget 2024. This notification by the Ministry of Finance was released on October 8, 2024, effective November 1, 2024.
This conditional waiver scheme under section 128A aims to give a total waiver of interest and penalty for specified non-fraudulent GST demand notices under section 73 relating to FY 2017-19 to 2019-20. Do note that this scheme only waives off the interest and penalty amount; you still need to pay the tax demand amount.
Siddharth Surana, Chartered Accountant and PGDM – IIM Bangalore, speaking to ET Wealth Online, earlier said, "The Finance Bill introduces Section 128A, which provides a waiver of interest and penalties for non-fraudulent taxpayers being assessed only under Section 73 for the periods FY 2017-18, 2018-19, and 2019-20."
"The eligible assesees have to make the payments vide Form DRC 03 until March 31, 2025 and upload the stipulated Forms until June 30, 2025. It must be ensured that the Forms are vigilantly filled to avoid any possibility of further litigation. Albeit the procedure is compliance heavy, however, it will ensure effective conclusion of proceedings arising out of Section 128A of the CGST Act," says Vivek Baj, Partner, Economic Laws Practice (ELP).
