Overview of GST Amnesty Scheme

A unique amnesty program has been introduced by the Central Board of Indirect Taxes and Customs (CBIC) for taxpayers who are facing issues with the Goods and Services Tax (GST). Taxpayers who disagree with a GST tax demand order have until January 31, 2024, to file an appeal under this scheme. For those who may have missed the original appeal deadline, this is an excellent opportunity.

This blog discusses the GST Amnesty Scheme, its benefits, and the considerations and preparations taxpayers need to make.

Who is Eligible to Challenge a GST Tax Demand Order?

This GST Amnesty program is available to specific taxpayers, allowing them to file an appeal against a GST tax demand order. The eligible taxpayers are:

• Those who were unable to file an appeal against the GST demand order issued by the appropriate GST officer before March 31, 2023.
• Those whose earlier appeal against the GST demand order was denied solely due to late submission.

The benefits of the amnesty program are available for any GST demand order issued by or before March 31, 2023.

How to Take Advantage of the GST Amnesty Program

Taxpayers must follow these steps to benefit from the GST Amnesty Scheme:

1. Receive a notice to appear for a GST demand from the GST Department.
2. Respond to the notice by indicating whether you agree or disagree with the GST requirement.
3. If the GST Department rejects the reply, they will issue a GST demand order.
4. Submit an appeal against the GST demand order using the GST APL-01 form.

Application for the GST Amnesty Scheme

The GST APL-01 form must be used to file an appeal under the GST Amnesty Scheme against the GST tax demand order.

How to Submit a Form Under the GST Amnesty Scheme

Under the amnesty program, a taxpayer must file the GST APL-01 form by following these steps:

1. Determine whether the tax notice is erroneous in whole or in part.
2. Deposit 12.5% of the contested amount with the GST office.
3. Ensure that at least 20% of the 12.5% sum is paid via an electronic cash ledger.

Getting Ready and Things to Think About

Taxpayers must carefully examine the demand order, as the GST Amnesty Scheme is only available for those GST demand orders issued under Sections 73 or 74 on or before March 31, 2023. This means that GST orders issued under other sections, such as refund denial or revocation of GST registration, cannot be appealed under the GST amnesty system.

It is important for taxpayers to note that the GST Department may take more than a year to offer a hearing following a reply to a show cause notice. An appeal can only be submitted if a GST demand order is issued following the hearing.

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