GST Demand Notice: Giving a big relief to GST taxpayers, the central government has announced exemption from interest and penalty on GST Demand Notice.
Taxpayers who received GST demand notice for the financial years 2017-18, 2018-19 and 2019-20 can now pay their dues without interest and penalty.
However, the condition is that the tax-demand notice should be of non-fraud category. The government has also issued a notification for this. This scheme will be implemented for GST taxpayers from November 1.
This GST exemption scheme was announced by the government in the General Budget-2024. It is being seen as an attempt by the government to reduce tax disputes. This relief has been given by the government under the new section 128A of the GST Act, which allows GST authorities to introduce exemptions to reduce the compliance pressure on taxpayers.
According to the decision of the 53rd meeting of the GST Council, its purpose is to resolve disputes where tax demand notices have been issued due to tax liabilities arising out of misunderstanding of law or interpretations rather than deliberate evasion. To avail this exemption, the outstanding amount in the GST demand notice has to be paid by March 31, 2025.
How to pay?
Once you pay the entire due amount, the interest and penalty amount attached to it will be waived off and your settlement will be completed. This exemption is only for those GST demand notices from the financial year 2017-18 to 2019-20, which are non-fraud category. If someone has received GST demand notice due to fraud during this period, then he will not get the benefit of this scheme.
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