Yes, GST penalties can be waived off under specific conditions in India, primarily through government-announced Amnesty Schemes, by proving "reasonable cause" for non-compliance, or correcting errors in good faith. The 2024–2025 amnesty scheme (Section 128A) allows waivers for FY 2017-18 to 2019-20 if tax dues under Section 73 are paid by March 31, 2025.
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. 8.
Applying for the GST Waiver: Form SPL-02
7. Final Checklist to Avoid GST Penalties in 2025
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.
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.
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.
An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000. Consider — in case tax has not been paid or a short payment is made, a minimum penalty of Rs 10,000 has to be paid. The maximum penalty is 10% of the tax unpaid.
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.
➢ 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 CRA will work with you to resolve your tax obligation. You can negotiate a payment arrangement which will see you pay your back taxes over time. For example, if you owe $1,000, you may offer to pay CRA $100 per month for the next ten months. To do this you need to contact your nearest Revenue Canada office.
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.
If you have not paid all the principal taxes accrued up to 31st December, 2022, you will be required to apply for the amnesty and propose a payment plan for any outstanding principal taxes which should be paid not later than 30th June, 2024. How can I apply for Tax Amnesty?
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.
Non/Late Payment
A 5% penalty will be levied on the amount of tax unpaid by the due date and an additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (capped at a maximum of 50% of the outstanding tax) may also be imposed.
You face a penalty when you file your GST/HST return late if you owe money. The penalty equals 1% of your unpaid amount plus 0.25% of that amount for each full month your return is late. The maximum penalty period is 12 months. After that, no additional monthly charges apply.
GST Late fees: - As per GST Law, Late Fees is to be levied in case of delay in filing of GST Returns. Late Fees cannot be construed as a "Penalty" or "Offence." The same is compensatory in nature and not penal. Therefore, it is allowed under Income-tax Act.
Travellers can declare and pay conveniently either in-person at checkpoints or digitally through the Customs@SG web application. Under the Customs Act, any person found guilty of fraudulent evasion of GST will be liable to a fine of up to 20 times the amount of tax evaded and/or be jailed for up to two years.
On Navigating to 'My Applications' page, the taxpayer has to select 'Apply for Waiver Scheme under Section 128A' option under 'Application type' dropdown. If the taxpayer wants to file a new application for availing waiver on Interest and Penalty, the taxpayer can click on 'New Application' button.
Steps to file Reply during an Appeal Proceeding
Step 1: Log in to the GST portal and navigate to Services>User Services>View Additional Notices/Orders. Step 2: On the case details page of the particular Case ID, select the notice tab and then click on reply. A 'Submit a reply to the notice' page will open.
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.
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.