Dharamshala: In a significant move, the Government of India has amended the Central Goods and Services Tax (CGST) Act, 2017, to offer relief to businesses facing tax liabilities. The GST Council, after multiple meetings, has introduced a new section—128A—which provides an amnesty scheme specifically aimed at reducing tax-related burdens for certain financial years. Amendment to CGST Act Brings Relief for Himachal Pradesh Businesses.
The newly inserted Section 128A is designed to waive interest, penalties, or both for demands made under Section 73 of the CGST Act. This waiver applies to non-fraud cases for the fiscal years 2017-18, 2018-19, and 2019-20, covering demands that businesses often face due to procedural delays and unintentional errors. With this amendment, businesses across Himachal Pradesh now have an opportunity to clear outstanding dues with reduced penalties and enabling them to focus on growth.
The Ministry of Finance has also released additional guidelines to clarify the specifics of Section 128A. In a recent statement, the Central Board of Indirect Taxes and Customs (CBIC) noted that several concerns were raised by trade organizations and field officers regarding implementation. To ensure consistency, the CBIC has issued clarifications, stating that the waiver applies only if businesses settle their outstanding tax dues by March 31, 2025.
What is Section 128A GST Amnesty Scheme?
As part of Budget 2024, the government introduced Section 128A to alleviate financial strain on businesses by waiving penalties and interest for eligible non-fraud cases from July 2017 to March 2020. This scheme allows businesses to resolve outstanding demands for the specified fiscal years with reduced penalties.
According to the Ministry’s guidelines, this scheme is geared toward non-fraudulent cases without allegations of willful misrepresentation. Qualifying businesses that wish to settle their dues are encouraged to take advantage of this scheme before the March 31 deadline to benefit fully from the waiver.
This amendment provides timely relief for Himachal Pradesh Businesses, especially those struggling due to procedural complexities and unintentional lapses during the initial GST implementation years. Local businesses can now strengthen their financial positions and refocus on economic growth in the state, contributing positively to Himachal Pradesh’s economic landscape.
With Section 128A now in effect, businesses have a clearer path to resolve their dues and avoid further penalties, ensuring better compliance and financial health.
