Understanding the GST Waiver Scheme under Section 128A: A Comprehensive Guide
The Goods and Services Tax (GST) regime in India has undergone significant transformations since its inception. To alleviate challenges faced by taxpayers, the GST Council introduced the GST Waiver Scheme under Section 128A of the Central Goods and Services Tax (CGST) Act, 2017. This scheme offers relief by waiving interest and penalties for specific tax demands, aiming to reduce disputes and enhance compliance.
Overview of Section 128A
Section 128A, introduced through the Finance (No. 2) Act, 2024, empowers authorities to waive interest and penalties associated with tax demands raised under Section 73 of the CGST Act. This provision targets tax periods from July 2017 to March 2020, addressing demands where fraud, suppression, or willful misstatement are not involved. Taxpayers can benefit from this waiver by settling the principal tax amount by March 31, 2025.
Eligibility Criteria for the GST Waiver Scheme
To qualify for the GST Waiver Scheme under Section 128A, taxpayers must meet the following conditions:
Applicable Tax Periods: July 2017 to March 2020.
Nature of Demand: Demands raised under Section 73, excluding cases involving fraud or willful misstatement.
Payment Deadline: Full payment of the principal tax amount by March 31, 2025.
Application Submission: Filing the appropriate application form (SPL-01 or SPL-02) through the GST portal.
Application Process: Forms SPL-01 and SPL-02
The GST Network (GSTN) has introduced two forms for taxpayers to apply for the waiver:
Form SPL-01: For cases where a notice or statement has been issued under Section 128(1)(a). This form will be available on the GST portal soon.
Form SPL-02: For cases involving demand orders under Sections 128(1)(b) and 128(1)(c). This form is currently available on the GST portal.
Steps to File Form SPL-02
Taxpayers can follow these steps to file Form SPL-02:
Login: Access the GST portal and navigate to ‘Services’ > ‘User Services’ > ‘My Applications’.
Initiate Application: Select ‘Apply for Waiver Scheme under Section 128A’ from the ‘Application Type’ dropdown and click on ‘New Application’.
Select Form: Choose ‘SPL-02’ and click ‘Create Application’.
Complete Questionnaire: Answer the mandatory questions regarding the demand order, appeals, and other relevant details.
Enter Demand Details: Provide information about the demand order, including order reference number, date of issuance, and the section under which the order was issued.
Submit Application: After filling in all required details, submit the application through the portal.
For a detailed guide, refer to the official help document:
Benefits of the GST Waiver Scheme
The GST Waiver Scheme unffers several advantages:
Financial Relief: Waiver of interest and penalties reduces the financial burden on taxpayers.
Dispute Resolution: Encourages settlement of outstanding tax demands, reducing litigation and disputes.
Compliance Encouragement: Motivates taxpayers to comply with tax regulations by providing a clear pathway to regularize past discrepancies.
Important Considerations
Timely Payment: Ensure the principal tax amount is paid by March 31, 2025, to avail of the waiver.
Accurate Information: Provide correct details in the application forms to avoid rejections or delays.
Monitor Updates: Stay informed about any further advisories or updates issued by GSTN regarding the waiver scheme.
Support and Assistance
If taxpayers encounter difficulties while filing applications or have queries regarding the GST Waiver Scheme, they can seek assistance by raising a ticket under the category “Issues related to Waiver Scheme” on the GST Self-Service Portal:
Conclusion
The GST Waiver Scheme under Section 128A repres initiative by the GST Council to support taxpayers in resolving past tax disputes without the additional burden of interest and penalties. By understanding the eligibility criteria, application process, and benefits, taxpayers can effectively utilize this scheme to achieve compliance and financial relief. It is imperative to adhere to the stipulated timelines and procedural requirements to fully benefit from the provisions of the GST Waiver Scheme.
