GST Council Approves Amnesty Scheme for Tax Demands u/s 73 for 2017-18, 2018-19, and 2019-20

In a significant move aimed at easing the compliance burden on taxpayers, the GST Council has approved an Amnesty Scheme for taxpayers facing demands under Section 73 of the CGST Act, 2017. This scheme applies to tax demands related to the financial years 2017-18, 2018-19, and 2019-20. The scheme is designed to provide relief to those who failed to meet their GST obligations due to non-payment or short payment of taxes without any fraudulent intent.

Key Highlights of the Amnesty Scheme

1. Scope of the Scheme: The Amnesty Scheme covers tax demands raised under Section 73 of the CGST Act, which pertains to the recovery of tax not paid or short paid without any intent of fraud or willful misstatement. This scheme applies specifically to the financial years 2017-18, 2018-19, and 2019-20.

2. Waiver of Interest and Penalty: One of the significant benefits of the scheme is the waiver of interest and penalty on outstanding tax liabilities. Taxpayers can settle their tax dues by paying the principal amount, and in return, the government will waive off applicable interest and penalties. This move is expected to reduce the overall burden on taxpayers and encourage them to clear their outstanding liabilities.

3. Eligibility Criteria: To avail of the benefits under this scheme, taxpayers must meet the following conditions:

   • The tax demand must be for the financial years 2017-18, 2018-19, or 2019-20.

   • The demand should have been raised under Section 73 of the CGST Act.

   • There must be no ongoing investigations, prosecution, or audits initiated under Section 74, which covers cases involving fraud or intentional evasion.

4. Deadline for Participation: Taxpayers looking to benefit from the Amnesty Scheme must pay their tax dues within the prescribed time frame. The last date for availing of this scheme will be notified by the government, and taxpayers are advised to keep an eye on official updates to avoid missing the deadline.

Advantages of the Amnesty Scheme

• Reduced Financial Burden: By offering a waiver on interest and penalties, the scheme reduces the overall financial liability for taxpayers.

• Closure of Past Liabilities: Taxpayers can clear their past dues and avoid the risk of facing further action, such as recovery proceedings, which could include attachment of properties or bank accounts.

• Encouraging Voluntary Compliance: The scheme is aimed at promoting voluntary compliance and helping taxpayers resolve outstanding issues with minimal legal and financial impact.

How to Apply for the Amnesty Scheme

Taxpayers can apply for the Amnesty Scheme through the GST Portal. Here are the steps:

1. Log in to your account on the GST Portal.

2. Navigate to the relevant tax period and view any pending demands raised under Section 73.

3. Pay the Principal Tax Amount: Once you identify the outstanding dues, make the payment for the principal tax amount. The system will automatically waive off any interest or penalties applicable under the Amnesty Scheme.

4. Generate the Challan and complete the payment process.

Conclusion

The GST Amnesty Scheme for the financial years 2017-18, 2018-19, and 2019-20 is a welcome initiative by the GST Council. It provides an opportunity for taxpayers to settle their outstanding tax liabilities without the burden of interest and penalties. Taxpayers are encouraged to review their past filings and take advantage of this scheme to close any pending tax demands.