"NO INTEREST NO PENALTY" GST major amnesty scheme introduced vide Section 128A in Finance Bill 2024 in the recent Union Budget presented by Finance Minister.

Here are the top few important aspects to know if your case is eligible for this major relief scheme!

1. Applicable only for Section 73 (non fraud cases) and not for Section 74 (fraud case)

2. Eligible for FY 2017-18, 18-19 & 19-20.

3. Three scenarios are covered - (i) notice issued pending order u/s 73; (ii) adjudication order issued u/s 73 but pending first level appellate authority order u/s 107; (iii) appellate authority order passed u/s 107 but pending Appellate Tribunal order u/s 113.

4. Section 74 orders are eligible for the scheme if the appellate authority or courts finds that to be not sustainable u/s 74 and is deemed as u/s 73 as per Section 75(2).

5. From the reading of clause (c) of Section 128A(1), it appears that the scheme is eligible for appellate authority order even in the case where assessment is made u/s 74, since Section 73 is not specifically mentioned in that scenario.

6. Scheme not eligible for erroneous refund - meaning applicable only for taxes not paid / short paid or excess availment & utilisation of ITC.

7. In the cases of department appeal, scheme would still be eligible, subject to condition that any additional amount of tax payable to be paid within 3 months of said order.

8. If appeal or writ petition is pending, scheme is not eligible unless it is withdrawn.

9. Once taxpayer opts for this scheme for a particular order, then no appeal shall lie against the order - This is a bottleneck since it is not possible for taxpayers to opt for relief for few issues and appeal against few issues within the same order.

10. If interest or penalty is already paid, NO REFUND of the same - unfortunately ARBITRARY and UNFAIR!

Cut off date for payment of taxes - Mentioned as 31st March 2025 in the GST Council press release. But the date is not specifically mentioned in the Section. To await notification.

Government should also make the GST portal ready to enable this scheme and also to come up with a detailed circular or FAQ clarifying common queries.

Do not miss the benefits of this scheme if you have an order for the first 3 years of GST law.

Stay tuned and Stay updated!!

#GSTwithSaradha

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