In the GST Notification No. 21/2024–Central Tax issued on October 8, 2024 taxpayers are granted substantial relief removing interest and penalties with regard to tax demands claimable under section 73 of the CGST act for the three financial years ending 2017-18, 2018-19 and 2019-20. This notification helps to ensure compliance through the addition of exceptions to the extra charges which apply if the taxpayer pays their taxes within certain deadlines.

Waiver deadlines and conditions

Persons who have been issued with such notices, statements or orders under Section 128A of the CGST Act must pay outstanding amount of tax by March 31, 2025. For the parties involved in Section 74’s tax redetermination cases, the waiver time concludes at six months since the generation of the redetermination order.

Compliance Techniques

To benefit from the waiver, businesses must follow key compliance steps:

1. Review and Evaluate Notices: The taxpayers should therefore consider any notice or order Checklist for the relevant financial years and consider the outlined payment compliance.
2. Make Timely Payments: It is also important to pay all amounts of other taxes due by the set date with no deductions to the interest and penalties to qualify for the waiver.
3. Seek Professional Guidance: Due to the fact that tax demands as well as redetermination cases poses so many challenges, any business interested in the waiver should seek advice from GST consultants or tax practitioners.

Impact on Businesses                           

This notification affords an excellent chance for companies with outstanding tax claims to clear their dues in full without additional penalties or interest. It goes a long way in reducing expense impacts for organizations which could have had poor compliance records with taxes in past years. Also, by following the compliance within the recently provided extended dates, legal procedures can be avoided, and GST remission for future periods can be made easier.

Conclusion        

The notification in its general setting of the matter also encourages compliance by informing taxpayers of a given period when they can voluntarily pay their dues without engaging in litigative proceedings, to the benefit of both a taxpayer and the government.

DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through call +91-9871990777 or info@semantictaxgen.in