In a significant relief for taxpayers facing tax demands from prior financial years, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 21/2024–Central Tax dated October 8, 2024, outlining the procedure and conditions for the waiver of interest, penalty, or both, in respect of tax demands under section 73 of the Central Goods and Services Tax (CGST) Act. This waiver applies to registered taxpayers for the financial years 2017-18, 2018-19, and 2019-20.
Key Highlights of the Notification
- Waiver on Interest and Penalty: Taxpayers can now avail waivers on interest or penalty, or both, for tax demands raised under section 73 of the CGST Act for the specified fiscal years.
- Deadline for Payment: For registered persons who have received a notice, statement, or order under section 128A, the deadline to make the required tax payments is March 31, 2025.
- Special Conditions for Redetermination Cases: For taxpayers whose cases involve a notice issued under section 74 and require redetermination of tax by the proper officer, the waiver period extends up to six months from the date of the redetermination order issued under section 73.
Eligibility and Procedure
- Registered Persons: The notification applies to all registered persons who have received a notice, statement, or order under section 128A regarding tax demands for the financial years 2017-18, 2018-19, and 2019-20.
- Timely Payment: To benefit from the waiver of interest or penalty, taxpayers must ensure payment of the tax demand within the deadlines specified in the notification.
Table of Waiver Deadlines
- For registered persons with notice/order under section 128A: The deadline to pay the tax demand is March 31, 2025.
- For persons requiring tax redetermination under section 74: The deadline for payment extends to six months from the date of the redetermination order issued under section 73.
Impact on Businesses
This notification provides a crucial opportunity for businesses with pending tax demands from the specified years to resolve their liabilities without incurring hefty penalties or interest. By offering a clear window for compliance, the CBIC aims to encourage taxpayers to settle their dues while reducing the burden of additional charges.
The notification will come into effect on November 1, 2024, giving taxpayers ample time to assess their tax situations and take necessary action.
Compliance Reminder
Taxpayers are advised to review their notices or orders and ensure timely payment to take advantage of the waiver. Early compliance will help businesses avoid further legal complications and ensure smoother GST management for future tax periods.
Official copy of the notification has been attached
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