GST Amnesty Scheme for interest and penalty raised under section 73
Amnesty Scheme by way of waiver of interest and penalty for demands raised under Section 73 The proposal of the GST Council is to insert Section 128A to provide a waiver of interest and penalties for demand orders issued under Section 73of the Central Goods and Services Tax Act, 2017 ('CGST Act'). This waiver applies to cases where taxpayers pay full tax demand by 31-03-2025. This is recommended for the financial years 2017-18, 2018-19, and 2019-20. However, the waiver is not to be extended in the cases of erroneous refunds. This recommendation provides significant relief to taxpayers where the tax remained unpaid in non-fraud, genuine cases of non-payment or short payment, etc. Since the inception of GST, many show-cause notices and demand orders have been issued for the starting years. The accumulated amount of interest for such initial years has grown equivalent to the tax amount or even more due to the extension of the time limit for issuing orders under Section 73 for FYs...