GST Amnesty Scheme 2025: Benefits, Eligibility, and Forms

GST Amnesty Scheme 2025: Benefits, Eligibility, and Forms. The GST Amnesty Scheme 2025, notified under Section 128A of the Central Goods and Services Tax (CGST) Act, is an important initiative aimed at reducing the compliance burden of taxpayers by waiving interest and penalties on outstanding tax dues. This scheme applies to cases assessed under Section 73 for the financial years 2017-18 to 2019-20. Effective from November 1, 2024, this amnesty scheme encourages businesses to settle dues and regularize GST compliance, making it a golden opportunity for businesses to clean their tax records and avoid future complications.
GST Amnesty Scheme 2025
The GST Amnesty Scheme is designed to support taxpayers who, due to procedural delays or financial difficulties, have not cleared their past GST dues. The scheme applies only to non-fraudulent cases and offers complete relief from penalties and interest under certain conditions. The aim is to offer businesses a clean slate and promote voluntary compliance. This initiative supports a more efficient and taxpayer-friendly GST administration system.
Applicability of the Scheme under Section 128A
Section 128A of the CGST Act specifically deals with tax demands raised under Section 73, which pertains to non-fraudulent tax defaults. Under this scheme, taxpayers are required to pay only the principal tax amount due and can avail of waivers on interest and penalty components. Rule 164 of the CGST Rules prescribes the procedure and conditions for the closure of proceedings under this scheme.
Eligibility Criteria for GST Amnesty Scheme 2025
To be eligible, the taxpayer must have received a notice or order under Section 73 or a statement under Section 73(3) for financial years 2017-18 to 2019-20. Only cases where there is no fraudulent intent are eligible. Taxpayers must ensure that there are no pending appeals or writ petitions related to the tax demand, and any such appeals must be withdrawn to qualify. Cases initially classified under Section 74 but later modified to Section 73 are also covered.
However, the scheme excludes cases where there are late fees under Section 47, tax assessed under Section 75(12), or where erroneous refunds are involved. Any pending litigation must be withdrawn to avail of the scheme.
Benefits of the GST Amnesty Scheme 2025
One of the most significant benefits is the complete waiver of penalties and interest for eligible tax periods. Taxpayers only need to pay the principal tax amount due. This provides relief from excessive financial liabilities and allows businesses to normalize their GST compliance status. The scheme simplifies the process with minimal documentation and online filing, reducing administrative burdens. Moreover, it allows businesses to revisit their past tax filings and make corrections, even reclaiming eligible Input Tax Credit (ITC).
Revival of Input Tax Credit (ITC)
Businesses that missed the opportunity to claim ITC during the relevant periods can now rectify their returns. The deadline for filing such rectifications is April 7, 2025. This benefit enables businesses to adjust their tax liabilities accurately and improve cash flow by reclaiming eligible credits.
Deadlines under the GST Amnesty Scheme 2025
To avail of the benefits under the GST Amnesty Scheme, taxpayers must adhere to the following timelines:

March 31, 2025: Last date for payment of principal tax dues.

April 7, 2025: Last date for availing of pending ITC and return rectifications.

June 30, 2025: Final date to submit waiver applications using the designated forms.

Missing these deadlines would result in ineligibility for the benefits, and taxpayers may face full penalties and interest.
Forms Used in GST Amnesty Scheme 2025
A series of dedicated forms have been introduced to streamline the application and approval process:

GST SPL 01: This form is used when applying for a waiver related to notices or statements. It requires the applicant to attach necessary documents, especially those listed in Table 7.

GST SPL 02: To be used when the taxpayer has received a demand order or order in appeal. This form is essential for formal waiver requests post-order.

GST SPL 03: Issued when the tax authorities require the applicant to provide more information. It includes a show-cause notice with reasons, outstanding tax amounts, and hearing details.

GST SPL 04: Used by taxpayers to respond to a show-cause notice. Must be filed within one month and include all supporting documentation.

GST SPL 05: Issued by authorities to conclude proceedings when the waiver application or reply is found satisfactory.

GST SPL 06: Issued when an appellate authority allows an appeal after a previous rejection.

GST SPL 07: Used to reject waiver applications, citing reasons such as incomplete or late payments, or incorrect information.

GST SPL 08: Issued when an appellate authority rejects an appeal following the initial rejection of a waiver application.

Overview of the GST Amnesty Process
The application process starts with the payment of the principal tax amount, followed by the filing of Form GST SPL-01 or GST SPL-02. If the application is not responded to within three months, it is deemed approved. However, if the authorities find discrepancies, a show-cause notice (GST SPL-03) is issued.
Applicants must respond within a month using GST SPL-04. If the response is satisfactory, approval is granted through GST SPL-05. Otherwise, the application is rejected via GST SPL-07. Rejected applicants may appeal, and if the appeal is successful, a revised approval is issued through GST SPL-06. If not, the rejection is confirmed in GST SPL-08.
Clarification on Appeal Withdrawals – Latest Update (May 14, 2025)
GSTN has clarified that to avail of benefits under Section 128A, taxpayers must ensure there are no pending appeals. Two scenarios are outlined:

Before APL-02 Issuance: If the Withdrawal Application (APL-01W) is filed before APL-02, the appeal is automatically withdrawn, and the status changes to "Appeal withdrawn."

After APL-02 Issuance: If filed after APL-02, withdrawal is subject to approval by the Appellate Authority. Upon approval, the status again changes to "Appeal withdrawn."

Taxpayers must upload a screenshot of the case folder showing "Appeal withdrawn" during the waiver application submission. This document is mandatory to validate that no appeal is pending.
Important Notes on Scheme Restrictions

The scheme does not offer any refunds for penalties or interest already paid.

Separate applications are needed for each notice, statement, or demand order.

Further appeals cannot be made against concluded orders under this scheme.

Importance of Timely GST Return Filing
Businesses are required to file GST returns regularly to maintain compliance and avoid penalties. Non-compliance can result in cancellation of GST registration and legal action. The GST Amnesty Scheme 2025 offers a one-time chance for businesses to clean up their past returns and restore compliance.
Why Businesses Should Act Without Delay?
Given the limited window, businesses must act promptly. Filing returns and paying outstanding taxes before March 31, 2025, is critical to avail of the benefits. Delay will lead to legal complications, interest accumulation, and loss of relief. Companies should seize this opportunity to become fully compliant and avoid further financial stress.
Conclusion
The GST Amnesty Scheme 2025, under Section 128A of the CGST Act, offers a timely opportunity for taxpayers to regularise their GST obligations by waiving penalties and interest on past dues. By simplifying the compliance process, extending deadlines, and offering substantial financial relief, the scheme empowers businesses to restore compliance and focus on growth. Taxpayers are advised to ensure all dues are paid and required forms are submitted within the prescribed deadlines.
For smooth and expert support in availing the GST Amnesty Scheme 2025, reach out to Compliance Calendar LLP. Our team of professionals is equipped to guide you through filing, documentation, and compliance—helping your business get back on track.
Email: info@ccoffice.in
Call/Whatsapp: +91 9988424211
FAQs
Q1. What is the GST Amnesty Scheme 2025 and who is it for?
Ans. The GST Amnesty Scheme 2025 is a government relief initiative under Section 128A of the CGST Act. It allows taxpayers with pending GST dues from FY 2017-18 to 2019-20 to settle their liabilities by paying only the principal tax amount. Interest and penalties are waived, provided the taxpayer is not involved in fraudulent activities and the tax demand is raised under Section 73.
Q2. Can a taxpayer with a pending appeal apply under the scheme?
Ans. No, the scheme strictly requires that no appeal or writ petition should be pending against the GST demand order. Taxpayers must first withdraw any such appeal. Once the status of the case shows as “Appeal withdrawn,” they can proceed with filing the waiver application.
Q3. What are the important deadlines under the GST Amnesty Scheme 2025?
Ans. To benefit from the scheme, taxpayers must pay the outstanding principal tax by March 31, 2025, rectify input tax credit (ITC) claims by April 7, 2025, and submit the waiver application forms (SPL-01 or SPL-02) by June 30, 2025. Failing to meet these deadlines will disqualify the taxpayer from the scheme.
Q4. What types of cases are excluded from the GST Amnesty Scheme?
Ans. The scheme does not apply to fraudulent cases assessed under Section 74, cases involving erroneous refunds, or tax dues assessed under Section 75(12). It also does not cover penalties for late GST return filing under Section 47 or any refund of interest and penalties already paid.
Q5. What forms are required to be submitted under the Amnesty Scheme?
Ans. Taxpayers must submit specific forms based on their situation. GST SPL-01 is used for notices or statements, while GST SPL-02 is used when a demand order is issued. Further responses and proceedings involve SPL-03 to SPL-08, depending on the nature of communication from GST authorities.
Q6. Will a taxpayer get a refund if they have already paid interest and penalties?
Ans. No, the scheme clearly mentions that no refund will be given if interest or penalties related to the eligible period have already been paid. The scheme only provides relief for dues that are pending and not yet paid.
Q7. What happens if the taxpayer does not receive a reply after filing the application?
Ans. If no response is received from the GST authority within three months of filing the application (GST SPL-01 or SPL-02), the waiver is deemed approved. However, taxpayers must ensure that all documents are correctly submitted to avoid delays or rejections.

The GST Amnesty Scheme 2025, notified under Section 128A of the Central Goods and Services Tax (CGST) Act, is an important initiative aimed at reducing the compliance burden of taxpayers by waiving interest and penalties on outstanding tax dues. This scheme applies to cases assessed under Section 73 for the financial years 2017-18 to 2019-20. Effective from November 1, 2024, this amnesty scheme encourages businesses to settle dues and regularize GST compliance, making it a golden opportunity for businesses to clean their tax records and avoid future complications.

GST Amnesty Scheme 2025

The GST Amnesty Scheme is designed to support taxpayers who, due to procedural delays or financial difficulties, have not cleared their past GST dues. The scheme applies only to non-fraudulent cases and offers complete relief from penalties and interest under certain conditions. The aim is to offer businesses a clean slate and promote voluntary compliance. This initiative supports a more efficient and taxpayer-friendly GST administration system.

Applicability of the Scheme under Section 128A

Section 128A of the CGST Act specifically deals with tax demands raised under Section 73, which pertains to non-fraudulent tax defaults. Under this scheme, taxpayers are required to pay only the principal tax amount due and can avail of waivers on interest and penalty components. Rule 164 of the CGST Rules prescribes the procedure and conditions for the closure of proceedings under this scheme.

Eligibility Criteria for GST Amnesty Scheme 2025

To be eligible, the taxpayer must have received a notice or order under Section 73 or a statement under Section 73(3) for financial years 2017-18 to 2019-20. Only cases where there is no fraudulent intent are eligible. Taxpayers must ensure that there are no pending appeals or writ petitions related to the tax demand, and any such appeals must be withdrawn to qualify. Cases initially classified under Section 74 but later modified to Section 73 are also covered.

However, the scheme excludes cases where there are late fees under Section 47, tax assessed under Section 75(12), or where erroneous refunds are involved. Any pending litigation must be withdrawn to avail of the scheme.

Benefits of the GST Amnesty Scheme 2025

One of the most significant benefits is the complete waiver of penalties and interest for eligible tax periods. Taxpayers only need to pay the principal tax amount due. This provides relief from excessive financial liabilities and allows businesses to normalize their GST compliance status. The scheme simplifies the process with minimal documentation and online filing, reducing administrative burdens. Moreover, it allows businesses to revisit their past tax filings and make corrections, even reclaiming eligible Input Tax Credit (ITC).

Revival of Input Tax Credit (ITC)

Businesses that missed the opportunity to claim ITC during the relevant periods can now rectify their returns. The deadline for filing such rectifications is April 7, 2025. This benefit enables businesses to adjust their tax liabilities accurately and improve cash flow by reclaiming eligible credits.

Deadlines under the GST Amnesty Scheme 2025

To avail of the benefits under the GST Amnesty Scheme, taxpayers must adhere to the following timelines:

March 31, 2025: Last date for payment of principal tax dues.
April 7, 2025: Last date for availing of pending ITC and return rectifications.
June 30, 2025: Final date to submit waiver applications using the designated forms.

Missing these deadlines would result in ineligibility for the benefits, and taxpayers may face full penalties and interest.

Forms Used in GST Amnesty Scheme 2025

A series of dedicated forms have been introduced to streamline the application and approval process:

GST SPL 01: This form is used when applying for a waiver related to notices or statements. It requires the applicant to attach necessary documents, especially those listed in Table 7.
GST SPL 02: To be used when the taxpayer has received a demand order or order in appeal. This form is essential for formal waiver requests post-order.
GST SPL 03: Issued when the tax authorities require the applicant to provide more information. It includes a show-cause notice with reasons, outstanding tax amounts, and hearing details.
GST SPL 04: Used by taxpayers to respond to a show-cause notice. Must be filed within one month and include all supporting documentation.
GST SPL 05: Issued by authorities to conclude proceedings when the waiver application or reply is found satisfactory.
GST SPL 06: Issued when an appellate authority allows an appeal after a previous rejection.
GST SPL 07: Used to reject waiver applications, citing reasons such as incomplete or late payments, or incorrect information.
GST SPL 08: Issued when an appellate authority rejects an appeal following the initial rejection of a waiver application.

Overview of the GST Amnesty Process

The application process starts with the payment of the principal tax amount, followed by the filing of Form GST SPL-01 or GST SPL-02. If the application is not responded to within three months, it is deemed approved. However, if the authorities find discrepancies, a show-cause notice (GST SPL-03) is issued.

Applicants must respond within a month using GST SPL-04. If the response is satisfactory, approval is granted through GST SPL-05. Otherwise, the application is rejected via GST SPL-07. Rejected applicants may appeal, and if the appeal is successful, a revised approval is issued through GST SPL-06. If not, the rejection is confirmed in GST SPL-08.

Clarification on Appeal Withdrawals – Latest Update (May 14, 2025)

GSTN has clarified that to avail of benefits under Section 128A, taxpayers must ensure there are no pending appeals. Two scenarios are outlined:

Before APL-02 Issuance: If the Withdrawal Application (APL-01W) is filed before APL-02, the appeal is automatically withdrawn, and the status changes to "Appeal withdrawn."
After APL-02 Issuance: If filed after APL-02, withdrawal is subject to approval by the Appellate Authority. Upon approval, the status again changes to "Appeal withdrawn."

Taxpayers must upload a screenshot of the case folder showing "Appeal withdrawn" during the waiver application submission. This document is mandatory to validate that no appeal is pending.

Important Notes on Scheme Restrictions

The scheme does not offer any refunds for penalties or interest already paid.
Separate applications are needed for each notice, statement, or demand order.
Further appeals cannot be made against concluded orders under this scheme.

Importance of Timely GST Return Filing

Businesses are required to file GST returns regularly to maintain compliance and avoid penalties. Non-compliance can result in cancellation of GST registration and legal action. The GST Amnesty Scheme 2025 offers a one-time chance for businesses to clean up their past returns and restore compliance.

Why Businesses Should Act Without Delay?

Given the limited window, businesses must act promptly. Filing returns and paying outstanding taxes before March 31, 2025, is critical to avail of the benefits. Delay will lead to legal complications, interest accumulation, and loss of relief. Companies should seize this opportunity to become fully compliant and avoid further financial stress.

Conclusion

The GST Amnesty Scheme 2025, under Section 128A of the CGST Act, offers a timely opportunity for taxpayers to regularise their GST obligations by waiving penalties and interest on past dues. By simplifying the compliance process, extending deadlines, and offering substantial financial relief, the scheme empowers businesses to restore compliance and focus on growth. Taxpayers are advised to ensure all dues are paid and required forms are submitted within the prescribed deadlines.

For smooth and expert support in availing the GST Amnesty Scheme 2025, reach out to Compliance Calendar LLP. Our team of professionals is equipped to guide you through filing, documentation, and compliance—helping your business get back on track.

Email: info@ccoffice.in

Call/Whatsapp: +91 9988424211

FAQs

Q1. What is the GST Amnesty Scheme 2025 and who is it for?

Ans. The GST Amnesty Scheme 2025 is a government relief initiative under Section 128A of the CGST Act. It allows taxpayers with pending GST dues from FY 2017-18 to 2019-20 to settle their liabilities by paying only the principal tax amount. Interest and penalties are waived, provided the taxpayer is not involved in fraudulent activities and the tax demand is raised under Section 73.

Q2. Can a taxpayer with a pending appeal apply under the scheme?

Ans. No, the scheme strictly requires that no appeal or writ petition should be pending against the GST demand order. Taxpayers must first withdraw any such appeal. Once the status of the case shows as “Appeal withdrawn,” they can proceed with filing the waiver application.

Q3. What are the important deadlines under the GST Amnesty Scheme 2025?

Ans. To benefit from the scheme, taxpayers must pay the outstanding principal tax by March 31, 2025, rectify input tax credit (ITC) claims by April 7, 2025, and submit the waiver application forms (SPL-01 or SPL-02) by June 30, 2025. Failing to meet these deadlines will disqualify the taxpayer from the scheme.

Q4. What types of cases are excluded from the GST Amnesty Scheme?

Ans. The scheme does not apply to fraudulent cases assessed under Section 74, cases involving erroneous refunds, or tax dues assessed under Section 75(12). It also does not cover penalties for late GST return filing under Section 47 or any refund of interest and penalties already paid.

Q5. What forms are required to be submitted under the Amnesty Scheme?

Ans. Taxpayers must submit specific forms based on their situation. GST SPL-01 is used for notices or statements, while GST SPL-02 is used when a demand order is issued. Further responses and proceedings involve SPL-03 to SPL-08, depending on the nature of communication from GST authorities.

Q6. Will a taxpayer get a refund if they have already paid interest and penalties?

Ans. No, the scheme clearly mentions that no refund will be given if interest or penalties related to the eligible period have already been paid. The scheme only provides relief for dues that are pending and not yet paid.

Q7. What happens if the taxpayer does not receive a reply after filing the application?

Ans. If no response is received from the GST authority within three months of filing the application (GST SPL-01 or SPL-02), the waiver is deemed approved. However, taxpayers must ensure that all documents are correctly submitted to avoid delays or rejections.