- Introduction of Section 128A: The GST Council has introduced Section 128A to provide a conditional waiver of interest and penalty for demands raised under Section 73 of the CGST Act for specified financial years (2017-18, 2018-19, and 2019-20). However, no refunds will be granted for interest and penalties already paid related to these demands.
- Procedure for Claiming Waiver: Rule 164 of the CGST Rules outlines the procedure for taxpayers to apply for a waiver of interest and penalty. The amended rules stipulate that if a notice covers periods both within and outside of Section 128A, taxpayers can file for a waiver for the covered period while informing the appellate authority of their intent to not pursue the appeal for that timeframe.
- Clarifications and Compliance Requirements: Recent clarifications emphasize that taxpayers must discharge their tax liabilities to avail of the benefits under the amnesty scheme. The necessary forms (SPL-01 or SPL-02) must be submitted following specific timelines, with the possibility of adjusting demanded amounts if payments were made previously. The amendments aim to streamline the process and provide clarity on compliance for affected taxpayers.
Source A2ztaxcorp
