GST Amnesty scheme for time barred appeals

1. Who Qualifies for Amnesty Benefits?

a. Individuals subject to taxation who were unable to file an appeal against an adjudication order issued on or before March 31, 2023, and where such an appeal wasn’t filed within the permissible time limit (3 months [standard time limit] or 1 month [with delay condonation]) from the date of the adjudication order under DRC07, or had previously filed an appeal but had it rejected solely due to being time-barred. This amnesty scheme applies to all such appeals.

b. Additionally, taxable individuals who had filed appeals against orders passed before March 31, 2023. If, as of the notification date on November 2, 2023, no order has been passed, then such appeals are also considered filed under this amnesty.

2. What Advantages Does This Amnesty Offer?

Individuals falling into any of the categories mentioned in ‘point a’ can submit an appeal using form APL-01 by January 31, 2024.

3. What’s the Required Pre-Deposit Amount?

For cases related to ‘point a’ above, a pre-deposit must be paid, which equals 12.5% of the tax amount in dispute, subject to a minimum of 20% of that amount. For example, if the disputed tax amount is Rs 1,00,000, the pre-deposit under amnesty would be 12.5% (Rs 12,500), with a mandatory cash payment of 20% of 12,500, i.e., Rs 2,500, while the remaining can be paid through the electronic credit ledger. However, if the pre-deposit amount exceeds Rs 25 Crores, the maximum pre-deposit is limited to Rs 25 Crores.

For appeals falling under ‘point b,’ a pre-deposit of the total 12.5% is required. This means the taxpayer must have already paid 10% of the disputed tax, and the remaining 2.5% should be deposited, with this differential 2.5% being mandatory cash payment.

4. Can You Seek a Refund if the Amount Already Paid Exceeds 12.5%?

For instance, if a taxpayer had a disputed liability of Rs 1,00,000 and had already deposited 20% of that amount (Rs 20,000), but the amount payable as per this notification as a pre-deposit is Rs 12,500, any amount paid beyond Rs 12,500 (Rs 20,000 – Rs 12,500, which is Rs 7,500) cannot be eligible for a refund.

Challenges Arise for Taxpayers:

The real challenge arises for taxpayers who have paid amounts exceeding Rs 25 Crores as pre-deposits. If the maximum pre-deposit allowed is Rs 25 Crores, any amount exceeding Rs 25 Crores cannot be claimed as a refund until the appeal is disposed of.

5. Which Appeals Are Ineligible for This Amnesty?

Any appeals that do not involve tax amounts are ineligible for amnesty. For example, appeals against the rejection of refund orders, E-way bill penalty demands, and registration revocation application rejections are not eligible for this amnesty.