GST Waiver Scheme Forms to be released by January 2025

The Goods and Services Tax (GST) Council recently introduced a waiver scheme aimed at reducing tax disputes and providing substantial relief to taxpayers. Recommended during the GST Council’s 53rd meeting on June 22, 2024, this waiver applies to interest and penalties on demand notices or orders issued under Section 73 of the CGST Act, 2017. The waiver excludes cases involving fraud, suppression, or willful misstatement and covers the financial years 2017-18, 2018-19, and 2019-20. To benefit from this waiver, taxpayers must settle the full tax amount demanded by March 31, 2025.

In line with this, the CGST Rules, 2017 were amended to incorporate Rule 164 through Notification No. 20/2024, issued on October 8, 2024, which took effect from November 1, 2024. This rule outlines the procedure for claiming the waiver. Under the scheme, taxpayers who receive a notice or order under Section 73 for the specified financial years are required to file an application using FORM GST SPL-01 or FORM GST SPL-02 on the GST common portal. Applications must be filed within three months from the official notification date, with the deadline for submission set for March 31, 2025.

The GST authorities have indicated that Forms GST SPL-01 and GST SPL-02 are currently under development and are expected to be available on the GST portal by early January 2025. In the interim, taxpayers are advised to settle the tax amount specified in any notice, statement, or order issued under Section 73 by March 31, 2025. This ensures they qualify for the waiver benefits as long as they complete the payment within the specified timeframe.

For those making payments, the “payment towards demand” option is available for demand orders, while Form GST DRC-03 should be used for notices. If a taxpayer has already made a payment through Form GST DRC-03 for a demand order, they must link this form to the respective demand order using Form GST DRC-03A, now accessible on the GST portal.

This waiver scheme provides taxpayers with an opportunity to reduce their tax liabilities by eliminating additional interest and penalties, provided they meet the March 31, 2025 deadline.