GST Amnesty Scheme: GSTN Issues Key Advisory for Taxpayers

The Goods and Services Tax Network (GSTN) has issued an important advisory for taxpayers who wish to apply for the GST Amnesty Scheme under Section 128A. This scheme gives a big relief to taxpayers by waiving interest and penalties on tax demands, provided certain conditions are met.

What Is the GST Amnesty Scheme Under Section 128A?

This scheme is a one-time opportunity for taxpayers to get a full waiver of interest and penalties on GST disputes. To benefit from it, the taxpayer must:

• Pay the full tax demand amount by March 31, 2025.
• Make sure no appeal is pending in the appellate authority for that tax demand. 

This scheme only applies to non-fraud cases filed under Section 73 of the CGST Act. These include:

• Clerical mistakes
• Delays in return filing
• Short payment of tax
• Excess input tax credit due to confusion or alternate interpretations of GST laws 

What Has GSTN Advised?

On May 14, 2025, GSTN advised that taxpayers must upload a screenshot from the GST portal showing that their appeal has been withdrawn. This screenshot must be attached when:

• Filing the waiver application
• Or updating an already filed waiver application. 

There’s no need to wait for courts or appellate authorities to formally confirm the appeal withdrawal. Instead, showing that you’ve applied for withdrawal is enough to proceed.

Understanding the Appeal Withdrawal Process

• If a withdrawal application (APL 01W) is filed before the final acknowledgement (APL 02), the system will automatically update the status to “Appeal Withdrawn”.
• If filed after final acknowledgement, the appellate authority must approve the withdrawal. Once approved, the status will again change to “Appeal Withdrawn”.

This change is important because the waiver scheme requires that no appeal is pending. The change in status to “Appeal Withdrawn” meets this condition.

As per Rule 164(7) of the CGST Rules, once the appeal is officially withdrawn, the final order must be uploaded on the GST portal within one month.

Why Is This a Helpful Move?

Earlier, taxpayers had to wait weeks or months for courts to officially process withdrawal requests. Now, uploading proof that the appeal withdrawal is requested is enough to apply for the waiver. 

This helps taxpayers avoid delays and gives them time to make use of the amnesty scheme before the deadline of June 30, 2025.

Conclusion 

The GST Amnesty Scheme under Section 128A gives a helpful chance for taxpayers with genuine mistakes to resolve their disputes without extra charges. With GSTN's latest advisory, the process has become easier and more time efficient. Taxpayers should ensure they make the payment by March 31, 2025, and submit the required proof by June 30, 2025, to avoid missing this golden opportunity.
 

Read more on: ITR Filing FY25: Are ESOPs Taxable?

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.