The GST Amnesty Scheme under Section 128A allows eligible taxpayers to settle past Section 73 tax demands by paying the principal tax and having interest and penalties waived, if the conditions are met and the application is approved.
Introduced through the Finance Act, 2023 and implemented via CBIC notifications in 2024, the provision defines specific conditions, procedures and timelines for availing this relief under the Central Goods and Services Tax (CGST) Act. It applies to Section 73 cases for FY 2017-18 to FY 2019-20, where tax was not paid or short-paid for reasons other than fraud, wilful misstatement or suppression of facts.
The scheme was time-bound, with deadlines in 2024-2025 and is closed to new applications as of March 2026, with no extension announced. References to the “GST Amnesty Scheme 2026” usually relate to pending applications, processing delays or ongoing litigation, not a new scheme.
Eligible taxpayers for the GST amnesty scheme
Taxpayers may be eligible for relief under the GST Amnesty Scheme (Section 128A) if they meet the following conditions:
- GST demands issued under Section 73 of the CGST Act for FY 2017-18, 2018-19 or 2019-20.
- Willingness to pay the full outstanding tax amount within the notified timelines as per applicable CBIC notifications.
- Registered persons with pending appeals related to such demands, provided the appeal is withdrawn before filing the waiver application.
- Submission of the waiver application in Form GST SPL-01 or SPL-02 through the GST portal within the prescribed deadline.
Form GST SPL-01 applies where a notice has been issued, while Form GST SPL-02 applies where an order has already been passed.
Additional Compliance Relief
Alongside the Section 128A amnesty, the government introduced separate compliance relief measures through various notifications. These include:
- Reduced late fees for certain pending returns, such as Goods and Services Tax Returns (GSTR) 3B, 4, 9 and 10.
- Provisions allowing revocation of cancelled GST registrations, subject to specified conditions.
- Time-bound opportunities to regularise non-compliance under separate notifications.
Note: These measures were introduced independently through different GST notifications and are not part of the Section 128A amnesty scheme.
Who is not eligible for the scheme?
Certain cases are excluded from the GST Amnesty Scheme to prevent misuse. The scheme does not apply to:
- Cases involving fraud, wilful misstatement or suppression of facts (covered under Section 74 of the CGST Act).
- Tax demands outside the specified period of FY 2017-18 to FY 2019-20.
- Cases where the taxpayer did not apply within the notified deadline, unless extended by the government.
How to avail the GST amnesty scheme (Section 128A)
Taxpayers must follow a specific process on the GST portal and meet the required conditions to benefit from the GST Amnesty Scheme under Section 128A.
- Check eligible tax demands
Review your GST demand orders issued under Section 73 of the CGST Act for FY 2017-18, 2018-19 and 2019-20. Check these in the “Notices and Orders” section on the GST portal to confirm eligibility.
- Pay the outstanding tax amount
Pay the full principal tax amount. Partial payments do not qualify for waiver benefits under Section 128A.
- Withdraw any pending appeals
If an appeal has been filed, withdraw it before applying. Use Form APL-01W and ensure the withdrawal is acknowledged before filing the waiver application.
- Submit the waiver application
File Form GST SPL-01 or SPL-02 on the GST portal. The waiver is granted only after verification and approval by the proper officer and is not automatic.
Note: Applications may be rejected if conditions are not fully met or documentation is incomplete.
Documents required to apply for the GST amnesty scheme
Collect these documents before applying for relief under Section 128A:
- Copy of the GST notice or order.
- Proof of tax payment, including DRC-03 reference details.
- Electronic Liability Register (screenshot or download).
- Appeal withdrawal proof, if applicable.
- Calculation note or working sheet explaining the tax computation.
- An authorisation letter, if filed by a consultant or authorised representative on behalf of the taxpayer.
Advantages of the GST amnesty scheme
The GST Amnesty Scheme offers practical benefits to businesses:
- Waiver of interest and penalties reduces the total amount payable.
- Clearing past-due amounts improves GST compliance records.
- Settling outstanding demands lowers the chances of recovery proceedings or legal action.
- Businesses can resolve pending GST demands from earlier years without prolonged litigation.
- After resolving past disputes, businesses can focus on ongoing compliance and operations.
Conclusion
The GST Amnesty Scheme offered a one-time opportunity to resolve past tax disputes without heavy penalties. While it is no longer open in 2026, its impact continues through ongoing cases and compliance corrections. If you have already applied, staying updated on processing and ensuring proper documentation can help close matters efficiently.
With TallyPrime, you can track past liabilities, monitor GST notices and keep your compliance records organised as you resolve pending issues.
