Benefit of Amensty Schement if Order is only for interest and penalty

[Abhijeet Mane]

Hi Team,

Can we apply for the benefit of amnesty scheme under GST- if the order only contains the demand for interest and penalty. (I.e., for Tax paid on secondment of employees)

AI Summary

Clarification on GST Amnesty Scheme: Section 128A Requires Demand for Tax, Interest, and Penalty Together, Not Just Interest/Penalties. A discussion on the applicability of the GST amnesty scheme for orders demanding only interest and penalties. One participant clarifies that the amnesty scheme, under Section 128A of the CGST Act, applies only when there is a demand for tax, interest, and penalty together, not just for interest and penalties. Another participant references Circular No. 238/32/2024-GST, which states that if the tax has been paid and the demand is only for interest and/or penalties, the benefit can still be availed. However, exceptions include cases where interest arises from delayed returns or reporting, which are not covered by the amnesty.