GST Amnesty Scheme: Overview, Eligibility & Key Benefits

Introduction

The GST Amnesty Scheme, introduced under Section 128A of the CGST Act, is designed to reduce the compliance burden for taxpayers by waiving interest and penalties on tax demands raised under Section 73. Effective from November 1, 2024, this scheme—referred to as GST Amnesty Scheme 2025—encourages businesses to clear outstanding dues and become compliant without facing heavy financial penalties. Rule 164 of the CGST Rules specifies the procedures and conditions for concluding such proceedings. To benefit from the scheme, taxpayers must pay their dues within the prescribed deadline and submit the required forms. This article offers a comprehensive overview of the GST Amnesty Scheme 2025, covering its key benefits, eligibility criteria, and applicable forms.

Latest Update (May 14, 2025):

The GST Network (GSTN) has issued a clarification regarding the appeal withdrawal process under the GST Amnesty Scheme, as per Section 128A. The scheme mandates that no appeal should be pending before the Appellate Authority against a demand order in order to claim its benefits.

Key Highlights of the Advisory:

Automatic Withdrawal Before Final Acknowledgment (APL-02):
- If a taxpayer submits a Withdrawal Application (APL-01W) before the Final Acknowledgment (APL-02) is issued by the Appellate Authority, the original Appeal Application (APL-01) will be automatically withdrawn by the system.
- The appeal status will auto-update from “Appeal submitted” to “Appeal withdrawn.”
Withdrawal After Final Acknowledgment – Requires Approval:
- If the Withdrawal Application is filed after APL-02 has been issued, the appeal will be withdrawn only after receiving approval from the Appellate Authority.
- Once approved, the appeal status will update to “Appeal withdrawn.”
Compliance Requirement Under Section 128A:
- To be eligible for the GST Amnesty Scheme, there must be no pending appeal against the demand order.
- In both scenarios above, once the appeal status reflects “Appeal withdrawn,” this requirement is considered met.
Supporting Document for Waiver Application:
- While submitting the waiver application, taxpayers must upload a screenshot of the appeal case folder that clearly shows the status as “Appeal withdrawn”—regardless of whether the withdrawal occurred before or after acknowledgment

Key Highlights: GST Amnesty Scheme under Section 128A

The GST Amnesty Scheme under Section 128A offers relief from interest and penalties for specified cases during the initial years of GST implementation.

Applicability:

Relevant Period: Covers the financial years 2017–18 to 2019–20.
Eligible Cases: Applies only to non-fraudulent cases assessed under Section 73 of the CGST Act.
Relief Offered: Waiver of interest (as per Section 50), penalty, or both.

Conditions for Availing Amnesty:

Tax Payment Deadline: The entire tax amount due must be paid on or before March 31, 2025.
Waiver Application Deadline: Application for waiver must be submitted by June 30, 2025.
Non-Refundable Payments: Any interest or penalty already paid will not be refunded.

Additional Requirements:

Separate Applications: A separate waiver application must be filed for each notice, statement, or order received.
Appeals and Petitions: The scheme is not applicable if an appeal or writ petition is pending and has not been withdrawn.
Erroneous Refunds: Relief is not available where any amount is due on account of an erroneous refund.
No Further Appeal: Once a waiver is granted and the case is concluded, no further appeal is permitted.

Compliance Essentials:

Timely and Accurate Filing: Proper and timely submission of forms and required documents is crucial to avoid rejection and ensure successful waiver approval

Eligibility Criteria – GST Amnesty Scheme 2025 (Section 128A)

To be eligible for the GST Amnesty Scheme 2025, the following conditions must be met:

The taxpayer must have been assessed under Section 73 of the CGST Act, which covers non-fraudulent cases.
The scheme applies to GST demand notices or orders issued for the financial years 2017–18 to 2019–20.
Relief is available for interest and penalties that accrued during the period from July 1, 2017, to March 31, 2020.
Taxpayers facing proceedings under Section 74 (fraud, willful misstatement, or suppression of facts) are not eligible for the scheme

Deadlines – GST Amnesty Scheme 2025

Under the GST Amnesty Scheme 2025, taxpayers must adhere to the following critical deadlines to avail the benefits:

Tax Payment Deadline: All outstanding tax dues must be fully paid on or before March 31, 2025.
Waiver Application Deadline: The relevant waiver application forms (SPL-01/SPL-02) must be submitted no later than June 30, 2025.

Please refer to the attached advisory for further clarification on the applicable timelines and procedural requirements. Timely compliance with both payment and form submission is essential to ensure eligibility under the scheme.

Types of Forms Related to the GST Amnesty Scheme (Section 128A)

The GST Amnesty Scheme 2025 involves various forms for processing waiver applications, notices, and appeals:

GST SPL-01: Application for waiver related to notices or statements. Requires submission of documents as specified in Table 7 of the form.
GST SPL-02: Application for waiver when a demand order or order in appeal has been issued.
GST SPL-03: Show Cause Notice issued to the applicant, detailing reasons for the notice, any short payment of tax (if applicable), and scheduling a personal hearing.
GST SPL-04: Response form for the Show Cause Notice. Applicants must submit their reply along with supporting documents (e.g., tax payment proof) within one month of receiving SPL-03.
GST SPL-05: Order issued to conclude proceedings if the application or reply is accepted or allowed. Specific timelines govern issuance depending on whether a reply was submitted.
GST SPL-07: Order of rejection issued when an application is incomplete, payments are late, or declarations are incorrect. This order is appealable. Previous appeals withdrawn for the same application can be restored if no new appeal is filed.
GST SPL-06: Order issued when an appellate authority allows an appeal following the rejection of an initial application.
GST SPL-08: Order issued when an appellate authority rejects an appeal.

Overview of the GST Amnesty Scheme Process

Payment of Tax and Initial Filing:
After paying the due tax, the taxpayer files the appropriate waiver form (GST SPL-01 or GST SPL-02).
Response Timeline:
- If no response is received within 3 months, the application is considered deemed approved.
- If a response is received within 3 months, further action will be taken.
Show Cause Notice (If Required):
A Show Cause Notice (GST SPL-03) may be issued detailing concerns and hearing details.
Submission of Reply:
The applicant must respond with GST SPL-04 within 1 month of receiving the Show Cause Notice, attaching relevant evidence.
Evaluation of Reply:
- If the reply satisfies the authorities, the application is approved through GST SPL-05.
- If unsatisfactory, an order of rejection (GST SPL-07) is issued.
Appeal Process:
In case of rejection, the applicant may file an appeal.
Final Orders:
- If the appeal is successful, approval is granted via GST SPL-06.
- If rejected, the final rejection is recorded with GST SPL-08.

About the Author

shivani

Shivani is an accomplished writer known for her ability to simplify complex legal topics into clear, practical insights. Her content equips entrepreneurs with the essential knowledge to confidently navigate business laws, helping them launch and manage their ventures with greater ease and clarity.

June 30, 2025