GST Amnesty Scheme 2024

The Central Board of Indirect Taxes and Customs (CBIC) has launched an Amnesty Scheme aimed at helping taxpayers who missed the deadline for filing appeals against demand orders issued under specific sections of the GST law. This scheme, recommended by the GST Council in its 52nd meeting on October 7, 2023, provides relief to those who couldn’t meet the March 31, 2023 deadline and now offers an extended opportunity to contest these tax orders.

What is the GST Amnesty Scheme?

The Amnesty Scheme introduced by CBIC is designed to benefit taxpayers who received demand orders but were unable to file appeals on time. Officially announced on November 2, 2023, via Notification No. 53/2023 Central Tax, this scheme extends the appeal deadline to January 31, 2024, for orders issued on or before March 31, 2023. However, appeals not directly related to tax, such as those involving penalties or registration issues, are excluded.

Scope of the Scheme

The scheme applies specifically to demand orders passed under Sections 73 and 74 of the CGST Act, 2017, which pertain to tax assessments, and it excludes cases unrelated to tax liabilities such as:

• Cancellation of GST registration
• Penalties under Section 129 for E-way bill violations
• Rejected refund claims
• Standalone penalty cases under Section 122

This focused approach helps taxpayers resolve specific tax-related disputes under the GST law.

Extended Deadline for Filing Appeals

The scheme allows taxpayers who missed the original March 31, 2023, appeal deadline to now file appeals by January 31, 2024. This extension aims to give them an additional chance to address and contest any discrepancies in the demand orders they received, ensuring fair representation and resolution.

Conditions for Filing Appeals Under the Amnesty Scheme

To participate in the Amnesty Scheme, taxpayers must meet certain conditions:

1. Payment of Dues: Taxpayers are required to clear the admitted tax amount, interest, fines, and penalties.
2. Pre-deposit Requirement: An additional 12.5% of the disputed tax amount is to be paid, with a cap at twenty-five crore rupees.
3. Electronic Cash Ledger: At least 20% of the dues must be paid from the Electronic Cash Ledger.

Following the steps in Chapter XIII of the CGST Rules, 2017, is essential to ensure compliance when filing an appeal under this notification.

Procedure for Filing Appeals Under the Amnesty Scheme

The scheme provides detailed guidance based on a taxpayer’s appeal status:

1. If No Appeal Has Been Filed Yet: Taxpayers can file an appeal using Form GST APL-01 on the GST portal by January 31, 2024.
2. If an Appeal is Pending: Taxpayers with ongoing appeals can opt into the scheme by making any required differential payments for the pre-deposit to align with Notification No. 53/2023.
3. If Appeal Was Previously Rejected as Time-Barred: Taxpayers whose appeals were rejected due to missed deadlines can refile. In case of any issues, they may raise a support ticket on the Grievance Redressal Portal.
4. If Appeal is Related to Demand Orders: Appeals related to demand orders issued up to March 31, 2023, are admissible under this scheme, while non-tax-related demand appeals are excluded.

Pre-Deposit Requirements for Amnesty Scheme

• Previous Requirement: Under Section 107(6), a 10% pre-deposit of the disputed tax amount was generally required.
• New Requirement: For ratifying or regularizing a pending appeal under the Amnesty Scheme, taxpayers need to pay an additional 2.5% of the disputed tax from their electronic cash ledger.
• Total Pre-deposit: This makes the total pre-deposit amount 12.5% for eligible appeals.

Refund Restrictions

Refunds are not permitted for any excess amounts paid until the appeal process concludes, either voluntarily by the appellant or under court or authority directives. This includes situations where an appeal is filed under subsection (1) of Section 107 of the CGST Act.

Why Taxpayers Should Consider the Amnesty Scheme

The GST Amnesty Scheme offers significant advantages for both taxpayers and the GST Department. Here’s why it could be beneficial:

• Reduced Appeals Backlog: By allowing missed appeals, the scheme can reduce the volume of cases awaiting resolution at the Appellate Tribunal level, streamlining the appeal process.
• Fair Representation Opportunity: Taxpayers who previously couldn’t represent their cases due to ex-parte orders now have the chance to file an appeal and present their case fully.
• Stay on Recovery Actions: Filing an appeal under the scheme may also stay any ongoing recovery actions by the GST department.

Conclusion

CBIC’s Amnesty Scheme provides a valuable opportunity for taxpayers who missed filing appeals within the original timeframe. With its flexible payment terms, extended deadlines, and options for ratifying ongoing appeals, the scheme encourages timely appeal filings and a fair process for resolving tax-related disputes. Taxpayers are advised to take advantage of this opportunity by filing appeals within the scheme’s deadline to ensure compliance and avoid additional penalties.

This initiative represents CBIC’s proactive approach to reducing litigation, supporting tax compliance, and easing the resolution process for taxpayers.