The Ministry of Finance has introduced a GST relief scheme, effective from November 1, 2024, under Section 128A of the Goods and Services (GST) Act. Announced in Budget 2024, this conditional waiver scheme offers registered individuals and companies a total waiver of interest and penalty for specific non-fraudulent GST demand notices related to FY 2017-18 to 2019-20. However, taxpayers are still required to pay the outstanding tax amount.
Eligibility Criteria
According to Section 128A, the waiver applies to cases assessed under Section 73 for certain tax periods. Section 73 deals with non-fraudulent GST demand notices. To qualify, the taxpayer must not be involved in fraud, willful misrepresentation, or suppression of facts.
How the Waiver Works
Taxpayers must agree with the GST demand, pay the tax amount, and cease all pending litigation to benefit from the waiver. Once the tax is paid, the notice will be extinguished. The waiver is conditional upon paying the disputed tax by March 31, 2025. However, taxpayers who have already paid interest and penalty will not receive refunds.
Scope of the Waiver
he waiver covers cases where:A notice has been issued, but no order has been passed.An order has been passed, but the Appellate or Revisional Authority has not issued a decision.An order is still under appeal at the Tribunal level.
