The Central Board of Indirect Taxes and Customs (CBIC) in relief for the taxpayers facing tax demands from the previous fiscal years has issued GST notification No. 21/2024–Central Tax dated October 8, 2024, specifying the procedure and prerequisites for the exemption of interest, penalty, or both, concerning tax demands u/s 73 of the Central Goods and Services Tax (CGST) Act. For the Fiscal years 2017-18, 2018-19, and 2019-20 the same exemption has been applied to the registered assessees.
GST Notification Highlights
Waiver on Interest and Penalty: For the mentioned financial years the taxpayers can now claim the exemptions on interest or penalty or both towards the tax demands raised u/s 73 of the CGST Act.
Payment Due Date: The due date to make the needed tax payments is March 31, 2025, for the registered individuals who have been issued a notice, statement, or order u/s 128A.
Conditions for Redetermination Cases: For the assessees whose matter engages a notice furnished u/s 74 and needs redetermination of tax via the proper officer, the duration of exemption shall extend to 6 months from the date of the redetermination order furnished u/s 73.
Compliance and Techniques
Registered Individuals: The same notification is applicable before all registered individuals who have been issued a notice, statement, or order u/s 128A for the tax demands for the Fiscal years 2017-18, 2018-19, and 2019-20.
Timely Payment: To take advantage of the interest or penalty waiver, taxpayers need to make their GST payments by the deadlines stated in the notification.
Table of Waiver Deadlines
- For Registered Persons With Notice/order U/S 128A: March 31, 2025, is the due date to pay the tax demand.
- For Persons Demanding Tax Redetermination U/S 74: The due date for the payment extends to 6 months from the date of the redetermination order furnished u/s 73.
Effect on Businesses
This announcement offers a vital chance for companies facing outstanding tax obligations from the designated years to settle their debts without facing significant penalties or interest charges. The CBIC seeks to promote timely payments by providing a transparent opportunity for compliance, helping taxpayers settle their liabilities, and minimizing extra costs.
On November 1, 2024, the notification will come into force furnishing the assessees plenty of time to evaluate their tax situations and take critical action.
Compliance Reminder
Taxpayers should check their notices or orders and make timely payments to benefit from the waiver. Timely compliance will assist businesses in steering clear of additional legal issues and facilitate smoother GST management for upcoming tax periods.
