Kerala GST Dept issues Circular on GST 2024 Amnesty Scheme, Reduces Waiver Benefit [Read Notification]

On September 28, 2024, the Kerala Goods and Services Tax ( GST ) Department issued an important circular reducing the waiver benefits applicable to tax arrears. A 2% has been increased by the department on the earlier amount payable, reducing the benefits to the taxpayers. It also granted the time to apply till Dec 31st 2024, however with a higher percentage of tax paying.

This notification, issued under the powers conferred by sub-section (2) of section 9, read with sub-section (4) of section 11 and sub-section (3) of section 10 of the Kerala Finance Act, 2024 (18 of 2024), outlines the new method for calculating the amount payable by applicants under Chapter III of the Act.

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

The circular specifies the revised payment structure for tax arrears under sections 9 and 10, which includes payments for outstanding dues and short payments. The reduced waiver benefits will now apply based on the specific arrears or surcharge amounts, with the payable amount calculated at the rates. The provisions are:

(a) for making payment under sub-section (1) of section 9 of the said Act;

(b) for making payment under sub-section (3) of section 9 of the said Act; and

(c) for making payment of the short paid amount referred to in sub-section (3) of section 10 of the said Act;

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

For arrears or surcharges exceeding ₹50,000 but up to ₹10 lakh:

• If an application is filed between September 30 and October 31, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 32% of the arrears must be paid.

• For applications filed between November 1 and November 30, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 34% of the arrears must be paid.

• For applications filed between December 1 and December 31, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 34% of the arrears must be paid.

For amounts exceeding ₹10 lakh but up to ₹1 crore:

• If an application is filed between September 30 and October 31, 2024 or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 52% of the arrears and 42% of the disputed tax must be paid.

• If an application is filed between November 1 and November 30, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 54% of the arrears and 44% of the disputed tax must be paid.

• If an application is filed between December 1 and December 31, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 56% of the arrears and 46% of the disputed tax must be paid.

Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here

For amounts exceeding ₹1 cores:

• If an application is filed between September 30 and October 31, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 82% of the arrears and 72% of the disputed tax must be paid.

• For applications filed between November 1 and November 30, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025, 84% of the arrears and 74% of the disputed tax must be paid.

• For applications filed between December 1 and December 31, 2024,  or for making the payment under clause (b) above after 60 days to 120 days of service of the modified order; or for making the payment under clause (c) above after 60 days to 120 days of receipt of the form referred to in sub-section (2) of section 10 of the said Act but not later than 31″ day of March, 2025,  86% of the arrears and 76% of the disputed tax must be paid.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates