GST Amnesty Scheme: Section 128A, Eligibility, Dates, and Past Schemes

Eligibility depends on which GST amnesty measure is being considered. Under Section 128A, the standard relief related to eligible Section 73 demands for FY 2017–18, FY 2018–19 and FY 2019–20. The taxpayer had to meet the payment, application and other conditions prescribed under the law and relevant notifications.

Before treating a demand as eligible, check:

• The financial year and tax period covered by the demand.
• Whether the notice or order falls within the categories specified under Section 128A.
• Whether the full eligible tax was paid within the applicable deadline.
• Whether any appeal or writ petition relating to the same demand remains pending.
• Whether the demand relates to an erroneous refund, which is excluded from this waiver.

The standard dates have passed. Some redetermined cases may have a separate period linked to the date of the redetermination order, so obtain case-specific advice rather than assuming that the original route remains available.

The standard Section 128A application window has closed. For eligible applications made within the notified window, the process involved paying the full tax and submitting the relevant waiver application through the GST portal. The forms depended on the type of notice or order.

• Review the notice, statement or demand order and confirm the tax period and legal provision cited.
• Reconcile the demand against payments already made and confirm the amount of tax that was required to be paid.
• Where applicable, withdraw an appeal or writ petition relating to the same demand and retain proof of withdrawal.
• Use the relevant application form under Rule 164. The prescribed forms included GST SPL-01 for a notice or statement and GST SPL-02 for an order, appellate order or revision order.
• Respond to any notice issued during the process within the applicable time limit, and retain the application acknowledgement, payment records and related correspondence.

As the general deadlines have expired, businesses should check the latest Central Board of Indirect Taxes and Customs (CBIC) notifications and seek professional advice before assuming that a new application can be filed.

For the standard Section 128A route, the full eligible tax had to be paid by 31 March 2025, and the waiver application generally had to be filed by 30 June 2025. These dates were subject to the notified provisions. For certain cases where tax was redetermined under Section 73 following a qualifying direction, a separate six-month period may apply from the date of the redetermination order. Confirm the position against the applicable notification and the facts of the case.

When a taxpayer met the conditions of an applicable scheme, the relief could help reduce the cost and administrative burden of resolving specified defaults. 

Potential benefits included:

• Reduced late fees or waiver of specified interest and penalties, depending on the scheme.
• An opportunity to bring overdue returns or eligible tax matters into compliance.
• Better visibility over outstanding liabilities and fewer unresolved compliance issues.
• More predictable cash-flow planning once the eligible liability and payment requirements were established.

The scope of relief must not be overstated. Section 128A did not waive the principal tax, and the earlier late-fee schemes had their own filing periods and exclusions. Businesses should not book a potential waiver as a saving until eligibility has been confirmed.

The main challenge is determining which scheme applies and whether its deadlines and conditions have been met. Common issues include:

• Confusing late-fee relief for overdue returns with the Section 128A waiver of interest and penalty on specified demands.
• Assuming the underlying tax amount is waived.
• Missing a payment or application deadline, or relying on an expired scheme.
• Failing to reconcile GST returns, notices, payment challans and demand orders.
• Withdrawing an appeal without first understanding the legal and financial consequences.

A business should maintain a clear record of notices, returns, payments, orders and appeal status. Where a demand is disputed or the legal route is uncertain, obtain professional advice before paying or withdrawing proceedings.

The 2021 GST amnesty measure offered reduced late fees for specified pending returns, including GSTR-3B returns for periods from July 2017 to April 2021, if filed within the notified period. The relevant filing deadline was 31 August 2021. This was a late-fee measure and should not be confused with the later Section 128A waiver of interest and penalty on eligible tax demands. The 2021 window has closed.

India has introduced several GST relief measures, each with its own eligibility criteria and deadlines. Key examples include:

• 2019: A measure allowed specified pending returns for July 2017 to September 2018 to be filed by 31 March 2019.
• 2021: A reduced late fee was available for specified overdue returns, including GSTR-3B returns for July 2017 to April 2021, within the notified window.
• 2023: The GST Council recommended relief for specified non-filers, including GSTR-4, GSTR-10 and GSTR-9, with late-fee concessions subject to conditions.
• January 2024: The notified window to file appeals in Form GST APL-01 against certain demand orders passed up to 31 March 2023 closed on 31 January 2024.
• 2024–2025: Section 128A introduced a conditional waiver of interest and penalty on eligible demands for FY 2017–18 to FY 2019–20. The standard payment and application windows have closed.

These are historical measures, not a single continuing scheme. Check the relevant notification and current official guidance before deciding whether any relief is available for your case.

Before making a payment or deciding whether to challenge a GST demand, organise the documents that explain the liability and its status. Check the tax period, sections cited in the notice or order, tax amount, interest and penalty calculations, previous payments, and the status of any appeal or writ petition. Reconcile these details with your filed returns and books of account, and keep copies of challans, acknowledgements and correspondence.

For a business, resolving a tax matter can also affect working capital. Build a cash-flow plan around the amount that is legally payable, rather than a possible waiver, and confirm the consequences with a qualified tax professional.

If you are planning a business expense or investment alongside your compliance obligations, you can add a funding check to your cash-flow review. Check your pre-approved business loan offer to explore whether an offer is available to you. Loan approval, amount, pricing and terms are subject to Bajaj Finance’s applicable eligibility criteria and assessment.

A GST liability should be assessed and settled according to the applicable law; borrowing does not replace tax compliance or make an expired amnesty window available again. If your business also needs funds for eligible operational requirements, such as inventory, equipment, technology or expansion, a business loan may be one funding option to assess separately.

Bajaj Finance offers business loan variants including Term Loan, Flexi Dropline Loan and Flexi Hybrid Loan. It offers loan amounts from Rs. 2 lakh to Rs. 80 lakh and repayment tenures from 12 to 96 months, subject to eligibility, verification and the lender’s terms. Interest rates, fees and other charges can vary, so review the current product terms and repayment obligations before applying.

Eligibility and documentation requirements apply. Review the current criteria and use the official application journey to check the options available to your business. Check your business loan eligibility before deciding whether borrowing fits your cash flow. Compare the expected business benefit with the total borrowing cost and avoid relying on uncertain tax relief to service repayments.