The Ministry of Finance appointed 1-11-2024 as the date on which Section 128-A of the Central Goods and Services Tax Act, 2017 (‘CGST Act’) relating to Waiver of interest or penalty relating to demands raised for certain tax periods will be enforced.
Key Points:
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The Section was inserted by the Finance (No. 2) Act, 2024 which aims to decrease the tax loads and also, provides relief for the assesses towards tax obligations made between 1-7-2017 to 31-3-2020.
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The Section enables the taxpayers to settle their tax obligations without facing extra interest/ penalties upon meeting certain conditions.
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Applicable to the amounts resulting from:
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Notices furnished under Section 73 of the CGST Act, relating to non- payment or short tax payment.
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Orders passed under Section 107 of the CGST Act (Appeals to Appellate Authority), relating to amendment of tax assessments.
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Orders passed under Section 108 of the CGST Act (Power of Revisional Authority), relating to amendment of pleas
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To avail the advantage, taxpayers will have to pay the total amount mentioned in the notice/ order.
In case, where an appeal is in process, the relief will not apply until the plea is withdrawn by the taxpayer.
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On payment of the amount mentioned in the notice/ order, the proceedings will be considered as finished and in certain cases no appeal can be filed against the order.
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Exceptions where no relief will be granted:
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Matters engaging in false returns;
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Interest/ Penalty that has been already paid will not be refunded.
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