Finance Ministry To Waiver GST Related Interest And Penalties For Non-Fraudulent Cases
Date
9/30/2024 2:54:30 PM
(MENAFN- KNN India)
New Delhi, Sep 30 (KNN) The Ministry of Finance has announced the implementation of several key provisions of the Goods and Services Tax (GST) Act, including the highly anticipated Section 128A, effective November 1, 2024.
This development comes as part of the broader fiscal reforms outlined in Budget 2024.
Section 128A, a newly introduced provision, offers significant relief to GST-registered individuals and companies.
The measure introduces a conditional waiver scheme that allows for the complete remission of interest and penalties on specific non-fraudulent GST demand notices pertaining to the fiscal years 2017-18 through 2019-20.
It is important to note that while the scheme provides for the waiver of interest and penalties, the underlying tax demand remains payable.
The implementation timeline was detailed in a notification issued by the Ministry of Finance on September 27, 2024.
The notification states that, in exercise of the powers granted by clause (b) of sub-section (2) of section 1 of the Finance (No. 2) Act, 2024, the Central Government designates the date of publication of this notification in the Official Gazette as the effective date for the provisions of sections 118, 142, 148, and 150 of the Act to come into force.
Additionally, it specifies that the provisions of sections 114 to 117, 119 to 141, 143 to 147, 149, and 151 to 157 of the Act will come into effect on the 1st of November, 2024.
The explanatory memorandum to Budget 2024 clarifies that Section 128A provides for waiver of interest or penalty or both relating to demands raised under section 73 for certain tax periods. Section 73 specifically addresses non-fraudulent GST demand notices.
This move is expected to provide relief to taxpayers while streamlining the tax collection process for the government.
(KNN Bureau)
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