GST Amnesty Scheme may be notified w.e.f. 1st Nov 2024

The 54th GST Council Meeting was held under the chairmanship of the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman in New Delhi on September 9th.

Various decisions were taken out of the proposed ones to simplify tax compliance and ease of doing business for tax professionals and individuals.

Key Recommendation on Measures taken for Facilitation of Trade

Procedure and Conditions for Waiver of Interest or Penalty or both, in respect of Tax Demands under Section 73 of CGST Act, 2017 for FYs 2017-18, 2018-19 and 2019-20 as per section 128A of CGST Act, 2017

The GST Council recommended the insertion of rule 164 in CGST Rules, 2017, along with certain Forms, providing for the procedure and conditions for availing of the benefit of waiver of interest or penalty or both, relating to tax demands under section 73 of CGST Act, pertaining to FYs 2017-18, 2018-19 and 2019-20, as per section 128A of CGST Act.

The Council further suggested that, under sub-section (1) of section 128A of the CGST Act, 31.03.2025 be notified as the date on or before which registered individuals may pay tax in order to benefit from the aforementioned advantage under section 128A of the CGST Act.

Generally, in order to participate in an Amnesty Scheme, one must first pay the Tax Amounts and then receive a waiver of interest. As a result, the Scheme allows for payment to be made against the relevant Order/SCN. Before that, an appeal can be filed with a pre-deposit for the aforementioned Order.

The Council also advised issuing a circular to explain several concerns connected to the availability of interest or penalty waivers, or both, under Section 128A of the CGST Act.

The Council also recommended that section 146 of Finance (No. 2) Act, 2024, which provides for the insertion of section 128A in CGST Act, 2017, maybe notified with effect from 01.11.2024.