New Amnesty Scheme u/s 128A of CGST Act, 2017

New Amnesty Scheme u/s 128A of CGST Act, 2017
• Section 146 of Finance Act, 2024 brought new section 128A
in CGST Act, 2017 wef 01.11.2024 (read with rule _ 164)
• It brought an amnesty scheme for tax payers to reduce
litigation and give some relief under some of the cases
covered u/s 73 of CGST Act, 2017 by waiving of interest
charged u/s 50 and penalty under this Act.
• It is in addition to the benefits given under newly inserted
section 16(5) and 16(6) on account of ITC effective from
08.10.2024..
New Amnesty Scheme u/s 128A of CGST Act, 2017
New amnesty scheme u/s 128A is effective from 01.11.2024 and
covers tax period from 1
st July 2017 to March, 2020 or part
thereof
New Amnesty Scheme u/s 128A of CGST Act, 2017
– This amnesty scheme does not includes cases having notices for
– interest/penalty for late/delay in filing of returns
– Penalty u/s 129.
– Unpaid tax or interest on which amount is recoverable u/s 75(12) as
recovery of taxes for self assessed taxes.
– It does not include cases where interest and penalty has already
been paid.
– It does not include cases where any amount is payable by a
person on account of erroneous refund
– It does not include cases where appeal against the order (u/s 73
or u/s 107 and 108 as the case may be) is filed and not
withdrawn.
New Amnesty Scheme u/s 128A of CGST Act, 2017
Amnesty scheme covers the following cases:
– If tax is not paid, short paid or erroneously refunded* or where ITC
is wrongly availed or utilised for any reasons and no fraud is
involved, proper officer has demanded such amount of tax with
interest and penalty :
• by issuing a notice u/s 73(1) of CGST Act, 2017
• by issuing a statement u/s 73(3) of CGST Act, 2017 for a period
other than period covered under notice u/s 73(1)
• Order is passed u/s 73(9) by adjudicating authority to pay taxes as
mentioned in said order with Interest and penalty.
* Not covered under the scheme _section 128A(2) contd…02
Section 128A amnesty scheme covers the following cases
– appeal is filed u/s 107(1) with appellate authority against an
order passed by the adjudicating authority u/s 73(9)
– Order is passed by appellate authority u/s 107(11)
– Order is passed by revisionary authority u/s 108(1)
– Appeal is filed with Appellate Tribunal u/s 112 (1) against an
order passed by appellate authority u/s 107(11) or by
revisionary authority u/s 108(1) but no order has been passed
by Appellate Tribunal u/s 113(1).
contd…03
Section 128A amnesty scheme covers the following cases
– Cases where Appellate authority or Appellate Tribunal or
courts concludes that the notice issued u/s 74(1) is not
sustainable for the reasons mentioned u/s 74 for fraudulent
purposes and proper officer in pursuance to such order has
to determine the tax payable under section 73(1).
– Penalty u/s 73, 122 and 125 are covered.
Conditions to avail the scheme…….
If a person chargeable with tax fulfil the following conditions, is
eligible for the benefits of the said scheme:
– He has to pay the full amount of tax on or before 31.03.2025,
payable as per the notice or statement or the order issued u/s 73 or
75(2) as the case may be,
– He also has to pay any additional amount of tax if any arises out
of any order passed by any authority under the law against an
appeal filed by the proper officer under the provisions of the laws