The Ministry of Finance has released the rules and procedures for a 'conditional waiver of interest and penalty' scheme as announced in the 2024 Budget in a move aimed at alleviating the financial burden on GST-registered taxpayers.
This scheme, effective 1 November 2024, targets specific non-fraudulent GST demand notices issued under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19, and 2019-20.
Under this initiative, eligible taxpayers can benefit from a total waiver of interest and penalties, although the original tax demand must still be paid. The scheme is particularly relevant for those who faced significant financial repercussions due to initial filing errors during the early implementation of GST, which often resulted in steep demands compounded by high-interest rates of up to 18 per cent.
To take advantage of this waiver, taxpayers must make their payments through Form DRC 03 by 31 March 2025, and ensure that they upload the required forms by 30 June 2025. The Ministry has stressed the importance of accurately completing these forms to avoid any potential disputes or further legal complications.
Experts in the field view this scheme as a much-needed relief for taxpayers who have struggled with accumulating interest and penalties over the years. The initiative aims to ease the compliance burden while ensuring a structured resolution for ongoing cases related to Section 128A of the CGST Act.
