The Ministry of Finance has introduced a conditional waiver scheme for GST-registered taxpayers, effective November 1, 2024. This initiative aims to provide relief from interest and penalties for non-fraudulent GST demand notices related to the financial years 2017-18 to 2019-20. Under Section 128A, eligible taxpayers can resolve their tax obligations while still needing to pay the original tax demand, thereby alleviating the financial burden stemming from earlier GST compliance issues.
The Ministry of Finance announced a new conditional waiver scheme for GST-registered taxpayers, effective November 1, 2024. This scheme, under Section 128A, offers a complete waiver of interest and penalties for specified non-fraudulent GST demand notices issued under Section 73 for the financial years 2017-18, 2018-19, and 2019-20. Importantly, while the scheme waives the interest and penalty, taxpayers must still pay the original tax demand.
Eligible taxpayers must pay the tax amount using Form DRC 03 by March 31, 2025, and upload the required forms by June 30, 2025. Careful completion of these forms is crucial to avoid further litigation, as the process is compliance-heavy but aims to effectively resolve outstanding issues.
Chartered Accountant Siddharth Surana noted that the Finance Bill introduces this waiver specifically for non-fraudulent cases assessed under Section 73, providing relief to those who made errors during the initial GST implementation. Ankit Jain from Ved Jain & Associates emphasized the relief this scheme brings, as many taxpayers faced significant demands due to mistakes in their filings, compounded by high interest and penalties.
Overall, this initiative seeks to alleviate the financial burden on taxpayers who faced challenges during the early years of GST, enabling a smoother resolution of their tax obligations.
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