Just few days before deadline govt amends GST Amnesty Scheme under Section 128A to give relief to these GST registered taxpayers
With just few days left for the March 31, 2025 deadline to deposit the GST tax demand due amount for applying to GST Amnesty Scheme under Section 128A the government has made few amendments to Rule 164. These amendments are aimed at solving two primary issues faced by GST registered taxpayers and which were preventing them from effectively using GST Amnesty Scheme-waiver of penalty and interest. The amendments relate to payment of GST tax demand and GST tax demand’s appeal application for those years where GST Amnesty Scheme is not applicable. To make the amendments clear, the government has also released some frequently asked questions about the same.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
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There are two deadlines to watch out for:
March 31, 2025: GST Amnesty Scheme tax demand paymentJune 30, 2025: Apply for GST Amnesty SchemeRead below to know more about what are the new amendments to GST Amnesty Scheme and what you need to know before making the payment on or before March 31, 2025.
Amendment 1- GST tax demand appeals
According to the notification (No. 11/2025–Central Tax) dated March 27, 2025 here are the details: "For the removal of doubt, it is clarified that the appeal application shall be deemed to have been withdrawn to the extent of the said intimation for the period from the 1st July, 2017 to the 31st March, 2020 or part thereof, for the purpose of sub-clause (3) of section 128A."Amendment 2- Payment of GST tax demand
According to the notification (No. 11/2025–Central Tax) dated March 27, 2025 here are the details: "No refund shall be available for any tax, interest, and penalty, which has already been discharged for the entire period, prior to the commencement of the Central Goods and Services Tax (Second Amendment) Rules, 2025, in cases where a notice or statement or order mentioned in sub-section (1) of section 128A, includes a demand of tax, partially for the period mentioned in the said sub-section and partially for a period other than mentioned in the said sub-section."a:hover{text-decoration:none;} .liveEventMain_widget{margin-top:15px;padding-top:24px;border-top:2px solid #000;position:relative;font-family:Montserrat;} .liveEvent_slider{position:relative;overflow:hidden;} .liveEvent_slider ul{white-space:nowrap;list-style:none;margin-top:12px;} .liveEvent_slider ul.sliderContainer{margin-bottom:30px;} .liveEvent_slider ul li{white-space:normal;width:282px;vertical-align:top;display:inline-block;margin-right:12px;border-radius:12px;box-shadow: 0px 4px 12px 0px #2407461F;background-color:#fff;overflow: hidden;} .images_wrap{position:relative;} .images_wrap .cover_img{object-fit:cover;object-position:center;border-top-left-radius:4px;border-top-right-radius:4px;} .images_wrap .author_img{position:absolute;left:10px;top:13px;border-radius:10px;} .images_wrap::before{background-image: linear-gradient(180deg, rgba(11, 11, 46, 0) 20.31%, rgba(11, 11, 46, .6) 61.46%, #0b0b2e);content: "";height: 100%;left: 0;position: absolute;right: 0;width: 100%;} .liveEventMain_widget .details{padding:12px;} .liveEventMain_widget .category{font-size:12px;line-height:14px;font-weight:700;color:#6a11b0;margin-bottom:8px;} .liveEventMain_widget .course_name{font-size:16px;line-height:20px;font-family:Faustina;-webkit-line-clamp:2;overflow:hidden;height:40px;display:-webkit-box;-webkit-box-orient:vertical;font-weight:600;color:#000;} .liveEventMain_widget .details .author_name{font-size:13px;line-height:16px;color:#333;font-weight:400;margin-top:4px;-webkit-line-clamp:2;overflow:hidden;height:32px;display:-webkit-box;-webkit-box-orient:vertical;} .liveEventMain_widget .view{border: 1.5px solid #D51131; display: block; padding: 8px 0; text-align: center; border-radius: 4px; font-size: 14px; line-height: 16px; color: #D51131; margin-top: 12px; width: 100%; font-family: Montserrat; font-weight: 600; cursor: pointer;} .liveEventMain_widget .view span{display: inline-block; width: 6px; height: 6px; border-top: 1.5px solid #ed193b; border-left: 1.5px solid #ed193b; transform: rotate(90deg); position: relative; left: 5px; top: -2px;} .liveEventMain_widget .view span::after{content: ''; display: inline-block; width: 11px; border-top: 1.5px solid #ed193b; transform: rotate(45deg); position: absolute; top: 3px; left: -2px;} .liveEventMain_widget .arrow_btn{width: 26px; height: 25px; position: absolute; z-index: 11; background-size: 312px; cursor: pointer;} .liveEventMain_widget .nextprev-btn{display:inline-block;width: 100%; position: absolute; top: 59%;} .liveEventMain_widget .prev-btn{background-position: -212px -2px;left: -12px;} .liveEventMain_widget .next-btn{background-position: -241px -2px; right: -3px;left:unset;} .liveEventMain_widget .arrow_btn.disable{opacity:0.5;} .liveEventMain_widget .ts-dots{display:inline-block;position:absolute;top:34px;right:10px;} .liveEventMain_widget .ts-dots ul{display:inline-block;} .liveEventMain_widget .ts-dots li{width:7px;height:7px;border-radius:50%;background-color:#cdcdcd;margin:0 2px;display:inline-block;} .liveEventMain_widget .ts-dots li span{display:none;} .liveEventMain_widget .ts-dots li.active{background-color:#ed193b;} .liveEventMain_widget .topContain { display: flex; align-items: center; gap: 6px; } .liveEventMain_widget .topContain .imgBox { max-width: 40px; } .liveEventMain_widget .topContain .logoTitle { font-family: "Montserrat", "Verdana"; font-weight: 700; font-size: 20px; line-height: 100%; } .liveEventMain_widget .topContain .logoSubTitle{ position: relative; font-size: 18px; font-weight: 500; line-height: 1.2; color: #747474; margin-left: 24px; } .liveEventMain_widget .topContain .logoSubTitle:before{ content:''; position: absolute; left: -13px; top: 0; width: 1px; height: 100%; background-color: #838383; } .liveEventMain_widget .liveEvent_slider .liveEventCardContainer{ } .liveEventMain_widget .liveEvent_slider .liveEventCardContainer .liveEventCard{ display: flex; } .liveEventMain_widget .liveEvent_slider .liveEventCardContainer .liveEventCoverImg{ }
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FAQs about the issues solved by the amendment to GST Amnesty Scheme under Section 128A
Issue 1- GST tax demand payment
Q1. Whether the cases where tax has been paid through return in FORM GSTR-3B instead of through FORM GST DRC-03, prior to the notification of section 128A i.e.1st November 2024, would be eligible for the benefit under section 128A of the CGST Act?Answer: It is clarified that the cases where the payment of tax has been made through FORM GSTR 3B prior to the issuance of demand notice and/or adjudication order before the date 1st November 2024, shall also be eligible for benefit under section 128A of the CGST Act, subject to verification by the proper officer.
Chartered Accountant Deep Koradia explains the meaning of this clarification. He says GST registered taxpayers previously had to pay the tax demand’s principal amount (without interest and penalty) via DRC-03 only, there was no other option. This limitation has now been removed up to a specified date.
“Now via Circular number 248-2025 dated March 27, 2025, it has been clarified that, to take the benefit of the scheme, even payment made through GSTR-3B will also be considered, provided such payment is made prior to November 1, 2024,” he says.
Chartered Accountant Bimal Jain, founder, A2Z Taxcorp explains that the first amendment relates to payment of GST tax demand using GSTR-3B.
Jain says: “It must be noted that Section 128A came into force from November 1, 2024. So the circular now says if a taxpayer has made payment through GSTR-3B form before November 1, 2024 then he/she would be eligible to apply for the GST Amnesty Scheme.”
Jain says if the payment has been made after November 1, 2024, then this payment to be done in a manner, as suggested in the table below:
Provisions covered under Section 128A(1) of the CGST Act
Cases covered under the provision
Due-Date of making payment
Mode of Making payment
Waiver Application to be filed under Section 128A of the CGST
Time-Period of filing Waiver Application
Clause (a)
Notice/ Statement issued u/s 73, but no adjudication order passed
31-03-2025
Form GST DRC-03
Form GST SPL-01
Within 3 months from March 31, 2025 i.e. 30-06-2025
Clause (b)
Adjudication order passed u/s 73, but no Order in Appeal (OIA) passed
31-03-2025
Payment to be made by crediting to E-Liability Register (ELR) against the debit entry created by the said impugned order
If any amount paid vide Form GST DRC-03, then, file Form GST DRC-03A to get adjusted demanded amount of tax in ELR
Form GST SPL-02
Within 3 months from March 31, 2025 i.e. 30-06-2025
Clause (c)
OIA passed but no GST Tribunal Order passed (no tribunal formed as yet)
31-03-2025
Payment to be made by crediting to E-Liability Register (ELR) against the debit entry created by the said impugned order
If any amount paid vide Form GST DRC-03, then, file Form GST DRC-03A to get adjusted demanded amount of tax in ELR
Form GST SPL-02
Within 3 months from March 31, 2025 i.e.30-06-2025
1st Proviso
Notice issued u/s 74 (Fraud Case), but Order is passed or is to be passed u/s 73 (Non-Fraud Case) on the direction of Appellate
Authority or Tribunal or Court [S. 75(2)]
Within 6 months of redetermined
order u/s 73
Payment to be made by crediting to E-Liability Register (ELR) against the debit entry created by the said impugned order
If any amount paid vide Form GST DRC-03, then, file Form GST DRC-03A to get adjusted demanded amount of tax in ELR
Form GST SPL-02
Within 6 months from the date of communication of the order of the proper officer redetermining such tax under section 73
2nd Proviso
Revision in OIA or appeal by the Department before the First Appellate Authority or Tribunal, if any additional tax determined
Pay within 3 months of the order passed
Payment to be made by crediting to E-Liability Register (ELR) against the debit entry created by the said impugned order
If any amount paid vide Form GST DRC-03, then, file Form GST DRC-03A to get adjusted demanded amount of tax in ELR
Form GST SPL-02
Within 3 months from the date of communication of the said appellate or revision order.
Source: A2Z Taxcorp LLP
Issue- 2- GST Tax demand appeal application
Q2. Whether (i) the entire amount of tax demanded is required to be discharged and(ii) the appeal is required to be withdrawn for the entire period, where notices/statements/orders issued to taxpayers, pertains to the period covered partially under Section 128A and partially by those outside it.
Answer: In cases where the notice/statement or order etc. pertains to the period partially covered under Section 128A and partially beyond the said period, Rule 164 (4) and proviso to Rule 164(7) have been amended to allow the taxpayer to file an application under FORM SPL-01 or FORM SPL-02 as the case may be after making payment of his tax liability for the periods covered under section 128A.
The taxpayer after filing FORM SPL01 or FORM SPL-02 as the case may, shall intimate the appellate authority or Tribunal his intent to avail the benefit of Section 128A and that he does not intend to pursue the appeal for the period covered under the said Section i.e. FY 2017-18 to 2019-20.
The Appellate Authority or Appellate Tribunal as the case may, shall after taking note of the said request, pass such order for the period other than that mentioned in the said sub-section, as it thinks just and proper.
Koradia explains the meaning of this amendment. He says that since the GST Amnesty Scheme under Section 128A covered only financial years 2017-18, 18-19 and 19-20 taxpayers with GST tax demand spanning through multiple years like FY 20-21, 21-22, etc were facing issues.
“So if a taxpayer has got a GST tax demand order for multiple years tax periods including these 3 years (FY 17-18, 18-19 and 19-20) + other years (e.g. FY 20-21, 21-22, etc) outside the period of the GST Amnesty Scheme under Section 128A then the taxpayer can split the payment and pay the tax demand for only the periods which fall under the GST Amnesty Scheme i.e. FY 17-18 to 19-20. The remaining periods (i.e. 20-21 onwards) for which the tax demand order has been issued can be continued in GST Appeal Proceedings,” says Koradia.
Chartered Accountant Pradeep Reddy, Unnathi Partners, agrees with Koradia and adds: "The amnesty scheme under Section 128A offers a much-needed waiver of interest and penalty for FY 2017-18 to 2019-20, provided the business pays 100% of the GST dues. To ease practical difficulties, CBIC has issued two helpful clarifications via amendment to Rule 164 for cases where GST demands span both eligible and other periods: (a) the business must first pay full GST for the eligible period to claim relief—no refunds will be given if dues were already paid. (b) There's no need to withdraw the entire appeal; the business can simply inform the appellate authority that it won’t pursue the appeal for the eligible period. The appeal for the other periods will be decided on merits. This move makes it easier for businesses to use the scheme without confusion."
Reason for the amendment about GSTR 3B and DRC-03
According to the circular dated March 27, 2025 here are the details:Representations have been received seeking clarification as to whether cases where payment has been made through FORM GSTR 3B, before coming into force of section 128A into force, i.e. 1st November 2024, are eligible for benefit provided under said section.The matter has been examined. Vide circular No. 238/32/2024-GST dated 15th October, 2024, it was clarified that any amount paid towards the said demand prior to the date notified under sub-section (1) of section 128A i.e. 1 st November 2024, shall be considered as payment made towards the amount payable under sub- section (1) of Section 128A, as long as the said amount has been paid prior to 1 st November 2024 and was intended to be paid towards the said demand.Further, rule 164 (1) provides that in order to avail the benefit under section 128A, payments are to be made in FORM GST DRC-03 towards the tax demanded in respect of a notice or a statement mentioned in section 128A (1) (a) and rule 164(2) provides that tax payment shall mandatorily be made only by crediting the amount in the electronic liability register against the debit entry created in respect of orders mentioned in clauses (b) and (c) of sub-section (1) of section 128A. The said sub-rule also provides the procedure to be followed for cases where payment has already been made through FORM GST DRC-03.From the examination of the above provisions, it is clarified that a taxpayer who has made the payment through FORM GSTR-3B before the date of coming into force of section 128A i.e. 01st November 2024, shall also be eligible to avail the benefit under the said section. However, any taxpayer who intends to avail the benefit of the said provision on or after the said section comes into force, i.e.1st November 2024 shall be required to make payments necessarily through the modes as prescribed under rule 164 of the CGST Rules.
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This story originally appeared on: India Times - Author:Faqs of Insurances
