GST Amnesty Scheme: Who can apply, last date to apply, how to apply Know here what is the process, conditions to fulfil before applying and what GST form is to be used for filing an appeal
The Central Board of Indirect Taxes and Customs (CBIC) has announced a special amnesty scheme for taxpayers facing issues with Goods and Services (GST). Under this GST Amnesty Scheme, specified GST taxpayers who disagree with a GST tax demand order, can file an appeal till January 31, 2024."The Special Amnesty Scheme was announced for condoning delay in filing the GST Appeal. The amnesty scheme is available till January 31, 2024. This is a golden opportunity for those taxpayers who might have missed the appeal deadline," said the Ministry of Finance on social media on December 17, 2023.
— FinMinIndia (@FinMinIndia) Who can file an appeal against a GST tax demand order?
CBIC, in a notification titled 'No. 53/2023- CENTRAL TAX' dated November 2, 2023, said that only select taxpayers can make use of this GST Amnesty scheme to file an appeal against a GST tax demand order. The specified taxpayers are:Those who could not file an appeal against the GST demand order passed by the GST proper officer on or before March 31, 2023, andIf the earlier appeal against the GST demand order were rejected solely on the grounds that the said appeal was filed after the deadline was over.The benefit of the amnesty scheme can be availed for any GST demand order issued on or before March 31, 2023. Hence, amnesty benefits can be availed even for a GST demand order for FY 2018-19.
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"Taxpayers should carefully read the GST demand order as only those GST demand orders issued on or before March 31, 2023, under Section 73 or 74 are eligible for the GST Amnesty Scheme. This means appeal under GST amnesty scheme cannot be filed against GST orders issued under different sections like refund rejection, cancellation of GST registration, etc.," says chartered accountant Abhishek Raja Ram, Senior Partner, Abhishek Raja and Associates, a New Delhi-based CA firm.
How to avail benefit from the GST Amnesty Scheme
Advocate Apoorv Philips, senior partner, Sirmacs Consulting, a New Delhi-based indirect taxation-focused law firm company, explains how one can benefit from this amnesty scheme."At first, the taxpayer receives a show cause notice from the GST Department about GST demand. The show cause notice also shows the exact reason for which the department issued a GST demand show cause notice. After receiving this notice, the taxpayer can either accept it and pay the GST demand plus interest or disagree with it and reply to the department. Once the taxpayer replies, the GST Department will order a hearing where the concerns of the taxpayer will be heard. After this hearing, if the GST Department rejects the reply of the taxpayer and thinks that the GST demand is correct, they will issue an order. This order is a GST demand order against which an appeal can be filed under the amnesty scheme," he said.
"In our practice, we have even seen that sometimes the GST Department took more than one year to grant a hearing to a taxpayer after a reply was given against a show cause notice. It must be noted that an appeal can only be filed if, after the hearing, a GST demand order is issued. Sometimes this issuing of order after a hearing can also take months, if not years. We have seen that happen with some of our clients," says Philips.
Once the GST demand order is issued, apart from interest and fee, a penalty may also be levied by the GST proper officer for failure to deposit the GST demand amount within the specified time.
Form for filing GST Amnesty Scheme
The appeal under the GST Amnesty Scheme against the GST tax demand order must be filed using GST Form APL-01."The said person shall file an appeal against the said order in FORM GST APL-01 in accordance with sub-section (1) of Section 107 of the said Act, on or before the 31st day of January 2024," said the CBIC in the notification. This is the only form required to file an appeal in the GST Amnesty Scheme.
How to file the GST Amnesty Scheme form
To file the GST APL-01 form under the amnesty scheme, a taxpayer must do as follows.Once a taxpayer receives a GST demand notice, he needs to understand whether the tax notice is fully or partially incorrect. If the taxpayer fully disagrees with the GST demand notice, then 12.5% of the disputed amount must be deposited with the GST department. The disputed amount cannot exceed Rs 25 crore.
Out of the 12.5% amount to be deposited, a minimum of 20% of this amount must be paid through an 'Electronic Cash Ledger'.
Philips from Sirmacs Consulting explains this with an example. Suppose Mr A has got GST tax demand show cause notice of Rs 1 lakh plus interest of Rs 10,000. He filed a reply to this notice by disagreeing fully with the amount. Now, the GST proper officer orders a hearing for this reply. Based on the merits, Mr A's reply, and the facts of the case, the GST proper officer rejected the claim and passed an order mentioning that Mr A had an outstanding GST demand of Rs 1 lakh along with Rs 10,000 interest. Additionally, a penalty of Rs 10,000 is also levied. Now, Mr A has a chance to file an appeal against this order under the GST Amnesty Scheme. However, to file this appeal, Mr A needs to deposit 12.5% of Rs 1 lakh, i.e. Rs 12,500, with the GST department. Further, a minimum of 20% of the 12.5% amount, i.e. Rs 12,500*20%= Rs 2,500, must be paid through an Electronic Cash Ledger. The balance of 80% can be paid through the Electronic Credit Ledger.
Now, it may happen that a taxpayer partially disagrees with the GST demand notice. From Mr A's example above, it may happen that he disputes the tax demand of Rs 20,000 from Rs 1 lakh. Philips says, in this case, Mr A agrees to pay Rs 80,000 out of the Rs 1 lakh as mentioned in the GST demand order and disputes the balance of Rs 20,000. Before filing an appeal under the GST Amnesty Scheme, Mr A must pay Rs 80,000 along with proportionate interest and penalty. For the disputed amount of Rs 20,000, Mr A must deposit 12.5% of Rs 20,000, i.e. Rs 2,500, with the GST department. Further, a minimum of 20% of Rs 2,500, i.e. Rs 500, must be deposited through an Electronic Cash Ledger, and the balance of 80% can be paid through an Electronic Credit Ledger.
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This story originally appeared on: India Times - Author:Faqs of Insurances
