The government has announced the GST Amnesty Scheme, with the Ministry of Finance issuing a notification on October 8.
This scheme will be available from November 1, 2024, and was first introduced by Finance Minister Nirmala Sitharaman in the Union Budget in July.
Taxpayers with pending tax cases from July 1, 2017, to March 31, 2020, can benefit from the scheme by paying reduced interest and penalties to settle their cases.
Relief in Interest and Penalty Only
Taxpayers who have received notices or orders under section 73 (except in cases of fraud) are eligible for the scheme.
However, it is important to note that the scheme provides relief only in interest and penalty amounts.
Taxpayers will still need to pay the actual tax demand. The government included section 128A in the Finance Bill to allow this relief for taxpayers facing notices under section 73.
Help for Taxpayers Who Made Unintentional Mistakes
Chartered accountants support this initiative, as many businesses made errors in filing GST returns when the system was first implemented on July 1, 2017, due to a lack of understanding of the new rules.
Many of these businesses received notices, and this scheme specifically addresses cases from FY18 to FY20, offering relief in such situations.
Reduction in Pending Cases
The government expects the GST Amnesty Scheme to provide relief to a large number of taxpayers and help reduce the backlog of pending cases in tribunals and courts.
Many businesses are currently facing difficulties due to these unresolved cases, and this scheme will allow them to settle their disputes by paying reduced interest and penalties.
