GST Amnesty Scheme 2025-Section 128A -Simplified

by FCA Mamta Chopra

Today I will discuss GST Amnesty scheme-Section 128A which is going to end by 31.03.2025 -last date before which payment of tax to be made to avail the benefits of the scheme.

I always tried to explain the provisions of the GST act in a simplified manner so that everyone can take benefit after reading it —

So let’s start about basic knowledge about this  scheme-

1. Main feature of this Scheme is that it gives relief to taxpayers from interest and penalties for the financial years 2017-18 to 2019-2020 under section 73 (Non -Fraud cases)  of the CGST Act 2017.
2. Section 128A was introduced in CGST Act 2017 vide Section 146 of Finance Act 2024 but this section was notified vide Notification No.17/2024 -CT to be effective from 1^st Nov 2024.
3. Thereafter, Rule 164 was inserted vide Notification No. 20/2024 – CT dated 08.10.2024.
4. Notification No 21/2024 CTC dated 08.10.2024 – In this notification -date -31.03.2025 is notified by which tax shall be paid to get the benefit of the amnesty scheme.
5. Circular No 238/32/2024 dated 15.10.2024 – various issues clarified in this circular about the scheme.

Section 128 A –

“128A. (1) Notwithstanding anything to the contrary contained in this Act, where any amount of tax is payable by a person chargeable with tax in accordance with, –

(a) a notice issued under sub-section (1) of section 73, or a statement issued under sub-section (3) of section 73, and where no order under sub-section (9) of section 73 has been issued; or

Analysis –  The scheme covers notices issued u/s 73(1) or statement issued u/s 73(3) but no order has been issued u/s 73(9).

b) an order passed under sub-section (9) of section 73, and where no order under sub-section (11) of section 107 or sub-section (1) of section 108 has been passed; or

Analysis – Also covers Adjudication order passed u/s 73(9) or in case an Order by the Appellate Authority/ Revisionary Authority under Section 107 (11) or Section 108 (1) is pending.

(c) an order passed under sub-section (11) of section 107 or sub-section (1) of section 108, and where no order under sub-section (1) of section 113 has been passed, 

Analysis-  Also covers in case order passed u/s 107(11) or 108(1) but order is pending u/s 113(1) -Appellate Tribunal.

Above we have discussed orders /notices covered Amnesty Scheme —To sum up –we can file application under this scheme if notice /statement issued but order pending u/s 73(9) and even if order passed but appeal pending u/s 107 /108 .Also even order passed u/s 107/108 but pending with Appellate Tribunal.

The first proviso of Section 128A (1) provides a fourth eligibility, for it covers the situation where the original notice was issued in Section 74 (1), but the proper officer has been directed under Section 75 (2) to re-determine tax in Section 73 (1).

Now proceed further – All such orders /notices stated above will be covered under Amnesty Scheme only if it pertains to FY 2017-18 to FY 2019-20 and said taxpayer has paid full amount of tax as stated in notice/statement/order on or before 31^st march 2025 .

In case where the tax is to be re-determined u/s 73, instead of Section 74, in pursuance to an order u/s 75 (2), the last date for payment would be the date ending on completion of six months from the date of issuance of the re-determination order by the proper officer under section 73.

Next question comes in our mind what will be the benefit covered under this scheme-

• Benefit is that complete waiver of Interest payable u/s 50 as stated in notice/statement/order and penalty proceedings will also deemed to be concluded after payment of tax.
• Also one thing to be kept in mind in case Interest & penalty paid –no refund will be there,,,
• This scheme does not covers orders issued related to erroneous refund.
• Further , pending appeals have to be withdrawn for going into the scheme.
• Also , cases concluded under this scheme will not be appeal against further…

Till now I have discussed -Eligibility , benefits covered under this scheme now next step will be filling of application-

• In cases referred to in clause (a) of sub-section (1) of Section 128A where a notice/ statement under Section 73 has been issued demanding tax interalia pertaining to the period from July 2017 to March 2020, for which no order has been issued under section 73, an application in FORM GST SPL-01, may be filed electronically on the common portal, by the taxpayer.
• In cases referred to in clause (b) and Clause (c) of sub-section (1) of Section 128A –

Order passed u/s 73 (9) but appeal pending u/s 107/108 or Appeal order passed u/s 107/108 but order pending for Appellate Tribunal u/s 113 , an application in FORM GST SPL-02, may be filed electronically on the common portal, by the taxpayer.

• Time Limit for Filling above applications – The application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be, shall be filed within a period of three months from the date notified under section 128A (1), i.e., within three months from 31.03.2025
• But in case where tax is re-determined from Section 74 to Section 73 -in such cases, an application in FORM GST SPL-02, can be filed within six months from the date of communication of order of the proper officer redetermining the amount of tax to be paid under section 73.
• Taxpayer has to enclose the order of withdrawal of such appeal/ writ petition in along with  the application filed in FORM GST SPL-01 or FORM GST SPL-02, as the case may be.
• In case the taxpayer has been issued multiple notices/ statements/ orders pertaining to demands under section 73, for period from July 2017 to March 2020, he is required to file a separate application in FORM GST SPL-01 or FORM GST SPL-02, as the case may be, in respect of each of the concerned notice/ statement/ order. 

Now proceed further how to make payment of tax –

• A notice or statement that is yet to be adjudicated, the payment towards the tax demanded in the said notice shall be made by the taxpayer through FORM GST DRC-03
• In case Adjudication order has been passed then tax demanded shall be made by the taxpayer, only by the making the payment against the debit entry created in the Part II of the Electronic Liability Register (ELR) by the demand order.
• However, in cases where the payment towards tax demanded in the demand order has already been made through FORM GST DRC-03, the procedure prescribed in rule 142(2B) may be followed. In such cases, the taxpayer shall be required to file an application in FORM GST DRC-03A as prescribed in the said rule, in order to adjust the amount already paid vide the FORM GST DRC-03, towards the demand created in the ELR-Part II, before filing the application for waiver under Section 128A in FORM GST SPL-02.

Next Step will be processing of applications and issuance of order-

• The proper officer will examine the applications -FORM GST SPL-01 or FORM GST SPL-02, as the case may be—
• If, on examination, he finds that the said application is liable to be rejected, he shall issue a notice to the applicant, within three months from the date of receipt of the said application, in FORM GST SPL-03 on the common portal. The proper officer shall also give the applicant an opportunity of personal hearing.
• On receipt of the notice in FORM GST SPL-03, the applicant may file his reply in FORM GST SPL-04, electronically on the common portal, within a period of one month from the date of receipt of the notice.
• The proper officer shall issue an order in FORM GST SPL-05, accepting the said application, if he is satisfied that the applicant is eligible for waiver of interest or penalty or both under Section 128A.
• The proper officer, based on the application and the reply in FORM GST SPL-04 received from the taxpayer, is of the view that the applicant is not eligible for waiver of interest or penalty or both under Section 128A, he shall issue an order in FORM GST SPL-07, rejecting the said application
• In case no FORM GST SPL-07 or GST SPL-05 issued within time limit prescribed in Rule 164 then the application filed in FORM GST SPL-01 or FORM GST SPL -02, as the case may be, shall be deemed to be approved.
• In case any amount of interest and penalty is payable on account of some demand pertaining to the period not covered under this scheme details of same shall be provided in Form SPL-01 /SPL-02 and pay the demand with in 3 months of order -GST-SPL 05/GST SPL 06 as case may be..
• Appeal against the orders issued under Rule 164 – In case GST SPL -07 issued then taxpayer can file an appeal against that order with in time limit specified thereon by filling an application in GST APL-01.  In case GST SPL-05 passed then on further appeal required. In case no appeal filed against rejection order then original appeal filed will be restored.

There is lot more I can write on this scheme but keeping in mind word limit ..I have to end here …Queries related to above can be mailed at mamta0581@gmail.com

This article is a part of Article Writing Competition 2025.