As the GST Amnesty (Sec. 128A) goes live on January 1, 2025, here are the top five FAQs to help you.
Q1. Is the benefit of Amnesty available for partial waiver of Interest or Penalty?
A1. This Amnesty scheme offers benefits when the full tax amount demanded in the Notice/Order is paid. Partial waivers for interest or penalties are not available.
Q2. Can the benefit of this Amnesty Scheme be available where the dispute is only of Interest?
A2. The benefit of this Amnesty Scheme is not available when the Interest is due to delayed filing of Return, or delayed reporting of any supply in the return or interest is on self-assessed liability.
Q3. Will the amnesty benefit apply to IGST and Compensation Cess issues?
A4. Yes the benefit of this scheme is available for cases involving IGST and Compensation Cess as per Sec. 20 of IGST Act and Sec. 11 of GST (Compensation to States) Act.
Q4. Is the benefit of this scheme available where the appeal is pending but the appeal is time-barred?
A4. Yes, the benefit of the scheme is available.
Honourable Supreme Court in Swan Mills vs UOI [(2007) 214 ELT 322] has held that where the appeal is pending on the date of declaration filing, the scheme's benefit is available. "Pending" covers an appeal barred by limitation.
Q5. Would the schemes' terms and conditions be a "liberal construction" or "strict construction"?
A5. Honourable Supreme Court in UOI vs Charak Pharmaceuticals India Ltd. [(2003) 154 ELT 354] has held that if all the requirements of the Scheme (KVSS in this case) are not met, then on principles of equity, courts cannot extend the benefits of that scheme.
Hope you will find these useful. Thanks
Abhishek Raja Ram
9810638155
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification