Understanding the Waiver Scheme under Section 128A
The Goods and Services Tax Network (GSTN) has issued an advisory, dated December 29, 2024, to assist taxpayers in filing applications under the waiver scheme. The waiver scheme, introduced under Section 128A, is designed to provide relief to taxpayers with pending demands or disputes by offering conditional waivers upon fulfilling certain criteria.
This article provides a comprehensive guide to help taxpayers navigate the process, with step-by-step instructions and solutions for common issues.
Key Steps to File Waiver Applications
- Access the Required Forms
- Both Forms GST SPL 01 and GST SPL 02 are now available on the GST portal.
- Taxpayers must use these forms to apply for the waiver scheme.
- Withdraw Existing Appeals
- A critical eligibility condition for applying under the waiver scheme is the withdrawal of appeal applications related to the demand order, notice, or statement.
- Appeals filed before the First Appellate Authority (APL 01) can be withdrawn directly through the GST portal.
- Special Process for Appeals Filed Before March 21, 2023
- Withdrawal options for appeals filed before March 21, 2023, are not available on the portal.
- For such cases, taxpayers must:
- Submit a withdrawal request to the concerned Appellate Authority.
- The Appellate Authority will coordinate with the GSTN via the State Nodal Officer to process these requests from the backend.
Reporting Issues and Seeking Support
Taxpayers encountering difficulties in filing their waiver applications or withdrawing appeals can:
- Raise a ticket under the category “Issues related to Waiver Scheme” via the GST self-service portal at https://selfservice.gstsystem.in.
Latest Updates on the Waiver Scheme
Case Law Insights
- Madhya Pradesh High Court Ruling
- The court recently addressed challenges related to withdrawal processes for older appeal cases.
- It emphasised the need for GST authorities to provide clear guidance to taxpayers, ensuring minimal procedural delays.
- Applicability to Pending Disputes
- Taxpayers with disputes arising before March 21, 2023, have been granted a pathway to resolve issues without additional penalties, provided they meet all scheme requirements.
Recent Statistics
- Over 10,000 taxpayers have successfully withdrawn their appeals and filed waiver applications since the scheme’s portal update in December 2024.
- Around 25% of applications reported initial difficulties, resolved through backend coordination with State Nodal Officers.
Key Takeaways for Taxpayers
- Ensure all pending appeals are appropriately withdrawn before applying under the waiver scheme.
- Follow the updated guidelines for older appeals filed before March 21, 2023, to avoid delays.
- Use the self-service portal for any issues related to filing or withdrawal processes.
- Stay updated on legal precedents that may influence waiver scheme eligibility.