New provision targets cases in which GST Dues were raised under Section 73 of the GST Act,2017 which is related to non-fraudulent tax issues. The government has introduced important changes to the Goods and Services Tax (GST) laws, offering businesses by waiving certain interest and penalties on previous tax demands. This new provision, which takes effect 1 November, is included in Section 128A and enables GST authorities to grant waivers, reducing the compliance load for taxpayers.
It targets situations where tax demands are issued under Section 73 of the GST Act, addressing non-fraudulent tax issues. Decision was made during the 53rd meeting of the GST Council, aiming to clear up disputes caused by misunderstandings or misinterpretations of the law, rather than tax evasion.
The waiver is available to taxpayers assessed under Section 73 for the financial years 2017-18, 2018-19, and 2019-20. It’s important to those whose tax situation doesn’t involve accusations of fraud, misrepresentation, or hiding information. Taxpayers involved in disputes for non-fraudulent reasons can benefit and take advantage of this scheme if they agree to settle tax demands and stop ongoing legal cases.
To benefit from the waiver, businesses need to acknowledge the tax demand and pay the amount due by 31 March 2025. After the tax is paid, related interest and penalties will be waived, however, it’s important to remember that this waiver doesn’t cover cases involving fraud, approved refunds, or taxpayers who have already paid their interest and penalties.
Whether you’re a startup, small business, or established enterprise, our expert team of tax professionals ensures smooth, accurate, and timely GST Dues, return filing so you can focus on what truly matters—growing your business. Connect with Vakilsearch today.
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