GST penalties can be waived, primarily through government-announced amnesty schemes (such as Section 128A for FY 2017-20) or by proving reasonable cause, such as technical glitches, natural disasters, or genuine errors. Taxpayers must usually pay the outstanding tax liability by the stipulated deadline (e.g., March 31, 2025) and withdraw pending appeals to qualify for a waiver of penalties and interest.
1. Login into GST portal: Navigate to > Services > User Services > My Applications. 2. On Navigating to 'My Applications' page, the taxpayer has to select 'Apply for Waiver Scheme under Section 128A' option under 'Application type' dropdown.
Login to GST Portal and select the option - Services - Then select - Payment. Select Create Challan and window will be opened showing tax particulars, interest, penalty and fees details. Select Penalty and pay the same according to category - CGST, SGST or IGST. Q.
GST Notification 8/2025-Central Tax dt. 23-January-2025
Notification No. 08/2025 waives the late fee under section 47 of the Central Goods and Services Tax (CGST) Act for the annual return (FORM GSTR-9) for the financial years 2017-18 to 2022-23.
Steps to Apply for the GST Waiver
Here's a simplified breakdown of the process under Section 128A: File an Application on the GST Portal: Apply electronically using FORM GST SPL-01 for non-fraudulent notices or FORM GST SPL-02 for certain orders. Include details of the tax payments made using FORM GST DRC-03.
Businesses or individuals who have pending GST returns or appeals, such as those who missed filing returns for certain tax periods, generally qualify for the GST Amnesty Scheme. Yes, the GST Amnesty Scheme may apply to GSTR-9, the annual return filing.
The GST Amnesty Scheme under Section 128A grants total waiver of pending interest and penalty amount if the tax dispute amount is paid by an eligible taxpayer on or before March 31, 2025.
Penalties for a late GST return
You'll be charged a penalty for late filing – $50 if you're on the payments basis; $250 if you're on the hybrid or invoice basis. The penalty is due for payment before the 28th of the month after the return was due.
According to a report from the U.S. PIRG Education Fund, about 90 percent of first-time late fees can be waived if you simply ask. Even if you've missed payments more than once, some issuers still offer goodwill adjustments.
The GST Amnesty Scheme 2024 allows taxpaying citizens to resolve their debts or filing issues from the years 2017-18 up to 2019-20. According to Section 73, the scheme waives interest and penalties for non-fraud situations, but taxpayers must pay their entire tax amount before March 2025 while applying by June 2025.
Daily Late Fee: A late fee of ₹50 per day is paid on Central GST (CGST) and State GST (SGST). The cumulative amount of the late fee is ₹100/day of CGST and SGST combined. Maximum Cap: The maximum amount of the late fee is ₹5,000 per type of returns (CGST and SGST).
A person unhappy with any decision or order passed against him under GST by an adjudicating authority can appeal to the First Appellate Authority. If they are not happy with the decision of the First Appellate Authority they can appeal to the National Appellate Tribunal, then to High Court and finally Supreme Court.
Misclassification of Goods and Services To take advantage of lower tax rates, businesses misclassify high-tax goods and services under lower tax categories. Tax Evasion through E-Commerce Some online sellers evade GST by not reporting their actual sales, using multiple registrations, or mis declaring transactions.
➢ Waiver or reduction of penalty under section 273A(4)
Section 273A(4) empowers the Principal Commissioner or Commissioner to waive or reduce any penalty imposable under the Income-tax Act as well as to stay or compound any proceeding for the recovery of penalty.
The scheme provides an opportunity to employers and insured persons to settle disputes outside courts in a structured and transparent manner. It will remain in operation from 1st October 2025 to 30th September 2026. For coverage disputes, the scheme applies to both closed and running units.
Step 1: Log in to the GST portal, go to the 'Services' tab, click on 'Refunds' and select the 'Refund pre-application form' option. Step 2: On the page displayed called 'Refund pre-application form', fill in the details asked, and click on 'Submit'. A confirmation of submission will be displayed on the screen.
Contact customer service and explain that the missed payment was accidental. Request a fee waiver. Politely ask if they can remove the late fee, particularly if you have a history of on-time payments. Ask about penalty APR removal.
If you're delivering services on time to your clients, it can be frustrating to be met with excuses for late payment, which typically fall into one of four categories: systems error, supply chain, company crisis or dispute.
Payment history is the most important factor when determining your credit score, so just one late or missed payment could greatly impact your credit. Legitimate payments that are 30 or more days late may stay on your credit report for seven years, but filing a dispute could remove illegitimate late payments.
If you don't pay on time, we will automatically add a general interest charge (GIC) to what you owe. Your debt will grow each day your debt remains unpaid. Interest calculates on a daily compounding basis on the amount overdue and is added to your account periodically.
You have to start charging GST/HST on the supply that made you exceed $30,000. You exceed the $30,000 threshold 1 over the previous four (or fewer) consecutive calendar quarters (but not in a single calendar quarter).
Grace periods typically range from 15 to 30 days. While technically a customer could wait until the exemption date to pay, insurers may still treat the premium as GST-inclusive based on the due date, not the payment date. ...
Avail the new GST Amnesty Scheme 2024, introduced via Section 128A for conditional waiver of interest and penalties for tax demands from FY 2017-18 to 2019-20 under Section 73. To qualify, taxpayers must fully pay outstanding tax dues by March 31, 2025.
An offender not paying tax or making short-payments has to pay a penalty of 10% of the tax amount due, subject to a minimum of Rs. 10,000. Therefore, the penalty will be high at 100% of the tax amount when the offender has evaded i.e., where there is a deliberate fraud.
To avail of the GST Amnesty Scheme under Section 128A, taxpayers must: Pay the full principal tax demand by March 31, 2025. Apply for the scheme by June 30, 2025.