Yes, interest on late payment of GST can be waived, but generally only under specific conditions, such as through government-notified amnesty schemes, technical glitches, or, in some jurisdictions, proven, unavoidable circumstances.
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.
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.
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.
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.
Applying for the GST Waiver: Form SPL-02
fees you pay that are associated with your bank like ATM fees, monthly account fees, or interest on your loans and credit cards do not include GST.
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.
Condonation of Delay: As per Section 107(4), the Appellate Authority may allow an appeal to be presented within a further period of one month if it is satisfied that the appellant was prevented by "sufficient cause" from presenting the appeal within the initial three-month period .
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 Amnesty Scheme 2025, as per Section 128A of the CGST Act, is a relief mechanism where the taxpayers are provided an opportunity to clear outstanding dues by exempting historical tax dues from penalty and interest.
Penalty on Missing the GST Due Date:
The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.
Application can be filed within a period of three months from date as per section 128A(1) (From 31.03. 2025). For orders of re-determination issued under section 73, time limit will be six months from the date of communication of order.
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.
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.
2- If the delay is condoned, then the case must be decided after both parties have been provided with an opportunity of being heard before the court. But if condonation is refused, then there is a chance that a meritorious matter would be thrown out on the basis of technicalities.
Late filing penalties for goods and services tax (GST)
There is a late filing penalty of $50 if you're on the payments basis. There is a $250 penalty for late filing on the hybrid or invoice basis. These penalties are usually due on the 28th day of the month after the return was due.
The expression "sufficient cause" for condonation of delay in section 5 of Limitation Act should receive a liberal construction so as to advance the substantial justice when no negligence or inaction or want of bona fide is imputable to party. [refer- State of West Bengal v.
Good news for GST registered taxpayers who wish to avail the GST Amnesty Scheme waiver of interest and penalty under section 128A announced in Budget 2024. GST SPL 02 form, using which a GST registered person can apply for this Amnesty Scheme, has now been enabled on the GST portal.
Rule 164 of the CGST Rules, 2017, seeks waivers of interest, penalties, or both for tax demands under Section 73 from 1st July 2017 to 31st March 2020 (“relief period”). Section 73 empowers the GST officers to issue a show cause notice to taxpayers where tax is not paid due to reasons other than fraud.
You are eligible for this credit if you are a resident of Canada for income tax purposes at the end of the month before and at the beginning of the month in which the CRA makes a payment (read When your GST/HST credit is paid). In the month before the CRA makes a quarterly payment, you must be at least 19 years old.
If you don't file the GST returns, then late fees will apply for every day of default that occurs. Further, if there is any tax due, then interest will apply at the rate of 18% per annum on the tax liability.
Where the late payment penalty is consideration for a financial supply (for example, a supply of an interest in a credit arrangement), there is no need for the supplier to account for GST for that supply. A charge for late payment penalty that is consideration for a financial supply is not an adjustment event.
Interest income is GST-free. It is explicitly exempt, meaning no GST is charged on the supply. Interest on loans, deposits, or advances, whether to third parties or related entities, bank interest on term deposits or savings accounts and interest income on inter-company loans are exempt from GST.