GST Amnesty Scheme 2023 – Latest Benefit for taxpayers

The Central Board of Indirect Taxes and Customs (CBIC) has introduced the GST Amnesty Scheme 2023 through Notification No. 53/2023 – Central Tax dated 2nd November 2023. This scheme is designed for taxpayers who wish to appeal against demand orders issued u/s 73 or 74 under GST laws. The deadline for filing appeals is set until 31st January 2024.

“The Ministry of Finance announced a Special Amnesty Scheme to condone delays in filing GST appeals. This opportunity, available until January 31, 2024, is particularly beneficial for taxpayers who may have missed the initial appeal deadline,” stated the Ministry of Finance on social media on December 17, 2023.

Who can apply under the GST Amnesty Scheme 2023?

The notification explicitly outlines the eligibility criteria for taxpayers seeking relief under the GST Amnesty Scheme. Those eligible include individuals who failed to file an appeal within the stipulated time frame as mentioned under section 107 against a demand order u/s 73 or 74 issued by the proper officer on or before March 31, 2023. Additionally, individuals whose appeals were rejected solely based on the grounds that the appeal was not filed within the specified time period as mentioned under section 107 are also covered by this scheme.

What about GST orders issued for rejection of refund or cancellation of GST?

Taxpayers are advised to meticulously review their GST demand orders, as only those issued on or before March 31, 2023, under Section 73 or 74 qualify for inclusion in the GST Amnesty Scheme 2023. It is important to note that appeals under this scheme are not applicable to GST orders issued under other sections, such as refund rejection, cancellation of GST registration, etc.

Procedure to avail the benefit of the GST Amnesty Scheme 2023

The concerned individual is required to submit an appeal against the mentioned order using FORM GST APL-01, as per section 107(1) of the Act, on or before the 31st day of January 2024. It is important to note that if an appeal against the order was filed in accordance with the provisions of Section 107 of the Act and was pending before the Appellate Authority before the issuance of this notification, it will be deemed to have been filed in accordance with this notification.

However, no appeal can be filed under this notification unless the appellant has paid:

• the full amount of tax, interest, fine, fee, and penalty admitted by them arising from the impugned order, and
• a sum equivalent to 12.5% of the remaining amount of tax in dispute arising from the said order, with a maximum cap of Rs. 25 crores for the appeal filed. Notably, at least 20% of this amount should have been paid by debiting from the Electronic Cash Ledger.

Benefit of GST Amnesty Scheme 2023 to the taxpayers

The Department of GST has undertaken this initiative to provide relief to taxpayers by enabling appeals, thereby alleviating the substantial burden of numerous appeal applications being filed or anticipated at the Appellate Tribunal. This procedure is designed to expedite the resolution of a majority of appeals at the First Appeal Authority, leading to significant time savings for the Tribunal.

Taxpayers stand to benefit greatly from this scheme by adhering to the prescribed timeframe for filing appeals. It is noteworthy that once an appeal is duly filed, recovery actions from the Department of GST will be temporarily stayed. Additionally, this presents a valuable opportunity for taxpayers who, due to various reasons, were unable to present their case before the Proper Officer and received an ex-parte order. Now, they can file an appeal, present their details, and seek some relief.