State introduces GST Amnesty Scheme to collect tax dues

Kolkata: The Mamata Banerjee government has introduced the GST Amnesty Scheme aiming to collect pending GST from financial year (FY) 2017-18 to 2019-20 in the backdrop of difficulties faced by the taxpayers during the initial years of GST implementation.

The scheme was introduced by inserting a new Section 128A to the CGST Act. This provides a waiver of interest and penalty on certain tax demands raised under Section 73 for the financial years 2017-18, 2018-19 and 2019-20. The scheme proposes waiver of interest and penalties if the full tax amount is paid within March 31, 2025 and application is made online through the portal within June 30, 2025.

The Directorate of Commercial Taxes is approaching approximately 20,000 taxpayers in the state’s jurisdiction against 34,000 demand orders to settle the dues.

“The Directorate took the initiative to arrange outreach programmes with stakeholders, including trade bodies and tax professionals, to help and encourage the taxpayers to avail the benefit of the scheme which provides waiver of interest and penalty to the taxpayers related to adjudication proceedings. This has been introduced for the first time since inception of the GST Act,” said a Finance department official.

The GST Council in its 53rd meeting held in June 2024 recommended introduction of such an amnesty scheme. In cases where the demand order is pending before an appellate authority or Court, the taxpayer will have to withdraw the appeal or writ petition filed before filing the application for waiver of interest and penalty. The waiver, however, does not cover demand raised on account of recovery of erroneous refunds.

According to a Nabanna official, the scheme aims to provide financial relief to the taxpayers thereby promoting compliance among defaulters by encouraging adherence to tax regulations and to facilitate the updating of tax records easing the administrative burden on both tax authorities and taxpayers for smoother operations.