Circular No. 248/05/2025-GST: Clarifications on GST Amnesty Scheme Under Section 128A of CGST Act 

The Government of India has issued Circular No. 248/05/2025-GST to clarify key aspects of the GST amnesty scheme under Section 128A of the CGST Act, 2017. This scheme provides relief for interest/penalty on tax demands for the period July 2017 to March 2020. The circular addresses eligibility for payments made via GSTR-3B, mandates DRC-03 for post-November 2024 payments, and outlines procedures for cases with partial-period coverage in demands. These clarifications aim to ensure uniform implementation and ease compliance for taxpayers.

Amnesty Scheme Key Clarifications

  1. Eligibility of Payments Made via GSTR-3B

    • Pre-November 2024 Payments: Taxpayers who paid taxes through FORM GSTR-3B (instead of DRC-03) before 1st November 2024 are eligible for the waiver benefit under Section 128A, provided the payment was intended for the demand in question.
    • Post-November 2024 Payments: From 1st November 2024 onward, payments must be made strictly through FORM GST DRC-03 as per Rule 164 of CGST Rules.

  2. Partial Period Coverage in Notices/Orders

    • For notices/orders covering periods both within (July 2017–March 2020) and outside the waiver scheme:
      • Taxpayers must pay the tax liability only for the covered period to file FORM SPL-01/SPL-02.
      • They must inform the appellate authority/Tribunal of their intent to withdraw appeals for the covered period, while continuing appeals for other periods.
    • The appellate authority will then adjudicate the non-covered periods separately.

  3. Withdrawal of Earlier Clarification

    • Point 6 of Circular No. 238/32/2024-GST (dated 15th October 2024) stands withdrawn to align with the above provisions.

Action Points for Taxpayers

  • Verify Payment Mode: Ensure compliance with DRC-03 requirements for payments made after 1st November 2024.
  • Partial-Period Cases: File SPL-01/SPL-02 for eligible periods and formally notify appellate authorities for withdrawal of appeals.
  • Trade Notices: Field formations must disseminate this circular widely.

Conclusion

The clarifications provided in Circular No. 248/05/2025-GST aim to streamline the implementation of Section 128A of the CGST Act, 2017, ensuring uniformity and transparency in availing the waiver of interest/penalty for demands related to the period July 2017 to March 2020. Key takeaways include:

  1. Flexibility for Past Payments: Taxpayers who paid taxes via GSTR-3B before 1st November 2024 are eligible for the waiver, subject to verification.
  2. Strict Compliance for New Payments: From 1st November 2024, payments must be made through DRC-03 as mandated under Rule 164.
  3. Partial-Period Cases: Taxpayers can avail benefits for eligible periods while continuing appeals for non-covered periods, ensuring a balanced approach.

Taxpayers are advised to:

  • Review their cases and comply with the clarified procedures.
  • Submit required forms (SPL-01/SPL-02) and communicate with appellate authorities for seamless processing.
  • Refer to trade notices for further guidance.

The Board remains committed to resolving implementation challenges and encourages stakeholders to report any difficulties promptly.

Note: This circular supersedes conflicting earlier instructions and ensures uniform implementation of Section 128A benefits.

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Blog Ref: GSTN Government Site

Disclaimer: This blog is for informational purposes only. Users should verify all relevant GST laws, acts, and CBIC rules independently and are responsible for any consequences.