The Goods and Services Tax Network (GSTN) has issued an important advisory regarding the GST Amnesty Scheme for waiver of interest and penalty under Section 128A.
According to the advisory, Form GST SPL-01 and Form GST SPL-02, which are required to apply for the amnesty scheme, are currently under development on the GST portal and are expected to be made available tentatively from the first week of January 2025.
This update has drawn attention across the tax community because the legal provisions of the scheme are already in force, while the portal functionality required to apply for it is still pending.
Timeline of the GST Amnesty Scheme under Section 128A
The development of the scheme has progressed through several stages:
- 22 June 2024 – Recommendation made during the GST Council meeting (53rd GST Council Meeting)
- October 2024 – Official notifications issued
- 1 November 2024 – Provisions of the scheme came into effect
- January 2025 (tentative) – GST portal expected to enable Forms SPL-01 and SPL-02
This timeline highlights a practical challenge: while the scheme is legally effective, taxpayers currently cannot apply online until the required forms are activated on the portal.
Purpose of the GST Amnesty Scheme under Section 128A
The GST Amnesty Scheme aims to provide relief to taxpayers by allowing waiver of interest and penalties for certain tax demands issued under **Central Goods and Services Tax Act, 2017 Section 73.
The scheme primarily benefits taxpayers who:
- Have pending tax demands for earlier financial years
- Wish to settle the principal tax liability
- Want relief from accumulated interest and penalties
Once the scheme is fully operational on the portal, eligible taxpayers will be able to apply using Form GST SPL-01 and Form GST SPL-02.
Forms Required for the Amnesty Scheme
Form GST SPL-01
This form will be used by taxpayers to apply for the waiver of interest and penalty under the scheme.
Form GST SPL-02
This form will be used by the tax authorities to process and communicate decisions related to the application submitted under SPL-01.
These forms will become available on the GST common portal once development is completed.
Concerns Raised by Tax Professionals
While the scheme itself is welcomed, the delay in enabling the required forms on the portal has raised several concerns among taxpayers and professionals.
Many experts believe that when lawmakers themselves require time to operationalize the scheme, taxpayers should also be provided adequate protection during the interim period.
Two major concerns have been highlighted.
Suggestion 1: Temporary Suspension of Recovery Proceedings
Professionals have suggested that authorities should issue a clear direction that:
- No recovery proceedings should be initiated for orders issued under Section 73 for the relevant three financial years
- Such protection should remain in place until 31 March 2025, allowing taxpayers to utilize the amnesty scheme once the portal functionality becomes available.
This would prevent unnecessary recovery actions while the scheme is still being technically implemented.
Suggestion 2: Extension of Time Limit for Appeals and Rectifications
Another key suggestion is to provide a blanket extension of time limits for appeals and rectification applications related to these orders.
Experts propose that the period from 22 June 2024 to 31 March 2025 should be excluded when calculating the limitation period, similar to the extensions granted during the COVID-19 pandemic.
Such a step could help ensure that taxpayers do not lose their legal rights simply because the portal functionality was delayed.
What Taxpayers Should Do Now
Until the forms are officially enabled on the portal, taxpayers should take the following steps:
✔ Review pending GST demand orders issued under Section 73
✔ Identify potential cases eligible for interest and penalty waiver under Section 128A
✔ Ensure that principal tax liabilities are properly reconciled
✔ Monitor updates from the Goods and Services Tax Network and the Central Board of Indirect Taxes and Customs
Staying prepared will allow taxpayers to quickly apply for the scheme once Forms SPL-01 and SPL-02 become available.
Conclusion
The GST Amnesty Scheme under Section 128A represents a significant opportunity for taxpayers to settle past GST disputes with waiver of interest and penalties. However, the delay in activating Forms GST SPL-01 and SPL-02 on the GST portal has created practical challenges.
As the tax community awaits the portal rollout expected in January 2025, there is growing demand for clear administrative instructions to prevent recovery proceedings and extend appeal timelines.Until further clarifications are issued, taxpayers should stay updated, review their pending demands, and be ready to take action once the scheme becomes operational online.