GST Amnesty Scheme 2024: Complete Guide for Businesses & Taxpayers

Cmaknowledge.in

Introduction

The GST Amnesty Scheme 2024 is a major relief for businesses and taxpayers struggling with pending GST dues. Introduced under Section 128A of the CGST Act, this scheme allows taxpayers to settle outstanding tax demands by paying only the principal tax amount, with full waiver of interest and penalties.

If you are a business owner, accountant, or CMA professional, this scheme is a golden opportunity to clear past dues and avoid legal troubles. In this comprehensive guide, we will cover:

• What is the GST Amnesty Scheme 2024?
• Who is eligible, and what are the benefits?
• How to apply step by step
• Important deadlines you must not miss
• Legal provisions and practical case studies

By the end of this article, you’ll have a complete understanding of how to take advantage of the scheme and regularize your GST compliance.

---

What is the GST Amnesty Scheme 2024?

The GST Amnesty Scheme 2024 was announced by the Central Board of Indirect Taxes and Customs (CBIC) to provide relief to taxpayers who have pending tax demands under Section 73 of the CGST Act.

Under this scheme:

• Businesses can pay only the principal tax amount and get a 100% waiver on interest and penalties.
• It applies to financial years 2017-18, 2018-19, and 2019-20.
• The scheme excludes fraud cases, meaning if the tax demand is under Section 74 (fraud cases), you cannot avail of this benefit.

This initiative helps businesses settle old tax disputes, ensuring smoother compliance in the future.

---

Eligibility Criteria for GST Amnesty Scheme

To avail the GST Amnesty Scheme, you must meet the following conditions:

✔️ Who is eligible?

• Taxpayers who received demand notices under Section 73 for unpaid GST dues in FY 2017-18, 2018-19, and 2019-20.
• Businesses with pending GST liability but no fraud, misrepresentation, or suppression of facts.

❌ Who is NOT eligible?

• Cases involving fraud, misstatement, or suppression, which are covered under Section 74.
• If a final tax order has already been settled or appealed, you may not qualify.

If your case falls under Section 73, this scheme is a great way to clear your dues without extra penalties.

---

Benefits of the GST Amnesty Scheme

This scheme offers significant relief to taxpayers by:

✔️ Waiving all interest and penalties – You only need to pay the principal tax amount.
✔️ Avoiding legal disputes – Helps businesses settle old tax dues and prevent future litigation.
✔️ Simplifying compliance – No lengthy audits or investigations, just a direct settlement process.
✔️ Preventing future GST registration issues – Non-compliance can lead to GSTIN cancellation, which this scheme helps avoid.

Many businesses have saved lakhs of rupees by taking advantage of similar amnesty schemes in the past.

---

Important Deadlines to Avail the GST Amnesty Scheme

• Tax Payment Deadline – March 31, 2025 (Pay full principal tax amount).
• Application Submission Deadline – June 30, 2025 (Submit required forms).

Failure to meet these deadlines will make you ineligible for the scheme.

---

How to Apply for the GST Amnesty Scheme: Step-by-Step Process

Step 1: Calculate Your Pending Tax Liability

• Check your GST demand notice under Section 73.
• Identify the principal tax amount due.

Step 2: Make the Payment on the GST Portal

• Use Form GST DRC-03 to pay the pending tax liability.
• Ensure the payment is completed before March 31, 2025.

Step 3: Submit the Required Forms

Depending on your case, submit one of the following forms:

✔️ Form GST SPL-01 – If a notice was issued but no final order was passed.
✔️ Form GST SPL-02 – If a final order was already passed for multiple tax periods.

Step 4: Withdraw Any Pending Appeals

• If you have filed an appeal against the demand notice, withdraw it before applying.

Step 5: Get Acknowledgment from the GST Department

• After submission, the GST department will verify your application and approve the waiver.

Once the process is complete, your interest and penalties will be waived, and your compliance status will be updated.

---

Legal Aspects: Understanding Section 73 vs. Section 74

Many taxpayers confuse Section 73 and Section 74 of the CGST Act. Here’s the difference:

• Section 73 (Eligible for Amnesty) – Covers non-payment or underpayment of GST due to errors, mistakes, or unintentional omissions.
• Section 74 (Not Eligible for Amnesty) – Covers cases of fraud, misrepresentation, or willful suppression of facts.

If your tax demand is under Section 74, you cannot benefit from the amnesty scheme.

---

Real-Life Case Study: How Businesses Are Benefiting

A Mumbai-based textile trader had a pending GST demand of ₹12 lakh, including ₹5 lakh in penalties and ₹2 lakh in interest. Under the GST Amnesty Scheme 2024, the business:

✔️ Paid only ₹5 lakh (principal tax).
✔️ Got a 100% waiver on the ₹7 lakh penalties and interest.
✔️ Avoided legal action and ensured future compliance.

This example shows how businesses can save money and regularize their tax filings under this scheme.

---

Common Mistakes to Avoid

🚫 Missing the deadline – Ensure you pay by March 31, 2025 and submit your application by June 30, 2025.
🚫 Incorrect form submission – Use the correct GST SPL-01 or SPL-02 form.
🚫 Ignoring withdrawal of appeals – If you’ve filed an appeal, withdraw it before applying.

---

Expert Opinions: What CMAs and Tax Consultants Say

According to leading CMA professionals and GST experts:

✔️ “This scheme is a golden opportunity for businesses to clear past GST dues without financial burden.”
✔️ “Filing errors are common, and this amnesty scheme helps businesses correct mistakes without legal trouble.”
✔️ “Companies should act fast to take full advantage before the deadline.”

If you have pending GST dues, don’t delay—act now to benefit from the amnesty scheme.

---

Final Thoughts: Should You Apply for the GST Amnesty Scheme?

The GST Amnesty Scheme 2024 is a once-in-a-lifetime opportunity to clear your pending GST dues without extra financial burden. If you have received a Section 73 notice, apply immediately to:

✅ Settle past tax liabilities without penalties.
✅ Avoid future legal issues and GST registration problems.
✅ Improve your company’s financial compliance.

Don’t wait until the last minute—ensure your tax dues are cleared before March 31, 2025, and submit your application by June 30, 2025.

---

Need Help? Contact a CMA or Tax Consultant Today!

For professional guidance, consult a CMA or GST tax expert to ensure you meet all compliance requirements.

Let us know in the comments if you have any questions about the GST Amnesty Scheme!