Navigating the GST Amnesty Scheme 2024: Procedures, Eligibility, and Compliance

Navigating the GST Amnesty Scheme 2024: Procedures, Eligibility, and Compliance This memorandum provides a detailed overview of the Goods and Services Tax (GST) Amnesty Scheme 2024, introduced under Section 128A of the GST Act (Budget 2024), and outlines the necessary steps for eligible taxpayers to avail themselves of its benefits. This scheme offers a significant opportunity for relief from penalties and interest associated with certain GST disputes. However, strict adherence to the prescribed procedures is paramount. I. Scheme Overview & Eligibility The GST Amnesty Scheme 2024 provides a one-time waiver of interest and penalties for specific categories of non-fraudulent tax disputes falling under Section 73 of the CGST Act. These disputes typically stem from: Inadvertent errors in tax calculations. Short payments due to clerical oversights. Delays in filing returns. Misinterpretations of tax laws resulting in underpayment. Crucially, this scheme excludes cases involving fraudulent activity as defined under Section 74 of the CGST Act. This includes instances of tax evasion, willful misrepresentation, suppression of facts, or fraudulent refund claims. A rigorous assessment of your past GST liabilities is recommended to determine eligibility under Section 73. II. Mandatory Appeal Withdrawal: A Critical Requirement A precondition for availing the Amnesty Scheme is the unconditional withdrawal of any pending appeals against the relevant GST demand order. This requirement is designed to streamline the resolution process and prevent taxpayers from pursuing relief under both the Amnesty Scheme and a parallel appeal. The withdrawal procedure depends on the date the appeal was originally filed: Appeals Filed Before March 21, 2023: Due to system limitations, a direct online withdrawal option is unavailable. Taxpayers must submit a formal written request for withdrawal to the relevant appellate authority. The appellate authority will then coordinate with the State Nodal Officer and GSTN to process the withdrawal within the GST system. Document all communication and retain proof of submission. Appeals Filed After March 21, 2023: The GST portal provides an online withdrawal option. Complete the withdrawal process through the GST portal, ensuring all steps are properly executed and documented. III. Tax Payment Requirement Eligibility for the interest and penalty waiver is contingent upon the full deposit of the disputed tax amount as determined in the demand order. Payment plans are not permissible. While penalties and interest may be waived under the scheme, the underlying principal tax liability must be satisfied in its entirety. IV. Application Process & Deadline GSTN has introduced specific forms—GST SPL-01 and GST SPL-02—for applications under Section 128A. The application process comprises the following steps: Appeal Withdrawal: Complete the necessary appeal withdrawal process as detailed in Section II. This is a prerequisite for submitting the amnesty application. Amnesty Application Filing: Upon confirmation of appeal withdrawal, submit the appropriate application form (GST SPL-01 or GST SPL-02) through the GST portal. Ensure all fields are accurately completed and supporting documentation is attached. Tax Payment: Remit 100% of the disputed tax liability before the stated deadline. Retain proof of payment for submission with the application. Submission of Payment Proof: Provide supporting documentation as evidence of tax payment to substantiate eligibility for the interest and penalty waiver. The deadline for both application filing and full tax payment is March 31, 2025. Given the procedural complexities, we strongly advise initiating this process well in advance of the deadline to mitigate potential delays. V. Government Stance & Compliance Benefits The mandatory appeal withdrawal requirement reflects the government's intent to reduce pending litigation and encourage voluntary tax compliance. This initiative aims to provide businesses with a pathway to resolve past disputes, improve their compliance record, and avoid protracted legal proceedings. VI. Available Support & Assistance For assistance with the appeal withdrawal or application process, taxpayers can utilize the GST Self-Service Portal. Issues pertaining to the waiver scheme can be reported under the designated category: "Issues related to Waiver Scheme.” Furthermore, the official advisory issued on December 29, 2024, available on the GST portal, offers further clarification regarding the prescribed procedures. VII. Conclusion & Recommendations Given the approaching March 31, 2025, deadline, we strongly recommend that you promptly evaluate your eligibility under Section 73, undertake the necessary appeal withdrawal procedures, and complete the application process. By adhering to these guidelines, you can maximize the benefits of the GST Amnesty Scheme 2024, achieving compliance and securing valuable financial relief from past inadvertent tax errors.

MULTIPLE PERMANENT ACCOUNT NUMBER (PAN) CARD ISSUE: PROBLEMS AND HOW TO SOLVE?

INTRODUCTION:

A PAN is a ten-digit alphanumeric number issued as a laminated PAN card by the Income Tax Department. It is an identifier of the “person” with the tax department. It facilitates linking various documents, such as payment of taxes, tax arrears, tax demand, etc., to an assessee. Having multiple PAN cards is against the law and is liable to penalty. Also, it will confuse financial transactions. This article explains the consequences of having an additional card and how to resolve multiple PAN card issues.  

WHY DO PEOPLE END UP HAVING MULTIPLE PAN:

Not everyone who has dual or multiple PAN cards has malicious intent. Sometimes, people obtain additional PAN cards accidentally. However, they are responsible for returning it since it leads to legal complications. Below, we have provided common cases of people having additional PAN cards.

• Multiple applications: Applying for a PAN card multiple times is the main reason people have more than one card. Most people apply one more time when they don’t receive their PAN card at the stipulated time they have already applied. As a result, they will get an additional PAN card.  An applicant needs to be patient in this case instead of reapplying. 

• Changing the details: An individual who wants to change the address or name on the card will apply for a new one. For example, if a woman intends to change her surname after marriage, it will lead to an application for a new PAN card. It is advisable to make the changes in the existing PAN card through the website or offline. 

• Malicious Intent: An individual or entity could apply for a new PAN card intentionally to cheat the government for tax evasion. Misusing the PAN card for personal advantages can lead to penalties and punishable acts.

• Ignorance of NRI’s: People sometimes end up with more than one PAN card because, in many cases, Non-Resident Indians (NRIs) visiting the country apply for PAN cards multiple times. This happens because there is a limit on the maximum transaction allowed without a PAN card. NRIs are compelled to obtain a PAN card for transactions beyond this limit. When NRIs return to the country after a considerable period, they often reapply for a PAN card, leading to the accumulation of multiple PAN cards.

PENALTIES:

Section 139A of the Income Tax Act states that a taxpayer should have only one PAN card. Possessing more than one PAN is illegal and can result in a penalty. Section 272B of the IT Act imposes a fine of Rs. 10,000 for having multiple PANs, decided by the Assessing Officer. Defaulters have the opportunity to explain themselves, and this section also applies when providing false PAN information. To deter the ownership of multiple PANs, the government enforces strict regulations and imposes a Rs. 10,000 fine under Section 272B of the Income Tax Act.

CONSEQUENCES:

• Risk of Legal Action: Individuals or entities found using multiple PANs to evade taxes can face legal consequences under income tax laws, in addition to fines. This prosecution clause serves as a warning to those attempting to save money through tax evasion, as it may lead to severe punishment.

• Financial Process Complications: Owning more than one PAN card can complicate one’s financial processes. Since the PAN card is essential for tasks like filing income tax returns and opening bank accounts, having multiple PANs can create issues for applicants, causing disruptions in their financial activities.

• Negative Impact on Credit Profile: Possessing multiple PAN cards can negatively affect one’s credit profile. Banks view individuals with multiple PANs as potential fraudsters, making them hesitant to approve loans. Financial institutions doubt their ability and intention to repay loans, often resulting in blacklisting and significant credit problems, even with a good CIBIL score.

SURRENDER A DUPLICATE PAN ONLINE:

The steps to return the Duplicate Online. Ensure you’re surrendering the additional PAN Number, it prone to violation of law.

Step 1: Visit the official website of NSDL (National Securities Depositories Limited).

Step 2: Select the PAN correction option from the ‘Application Type’ drop-down menu.

Step 3: Fill in personal details, including full name, date of birth, mobile number, email, and PAN.

Step 4: After submission, receive a new token number via email. Use this and your date of birth to log in and complete the application.

Step 5: Click on the ‘Submit scanned images through e-Sign’ checkbox and enter the PAN you want to retain.

Step 6: Fill out the remaining personal details, including selecting the additional PAN to surrender.

Step 7: Choose and upload documents as proof of identity, address, and date of birth.

Step 8: Preview the application, click ‘Verify,’ and proceed to make the payment. Receive an acknowledgement for future reference.

HOW TO RETURN AN ADDITIONAL PAN OFFLINE:

If you’re uncomfortable with the online process, surrender it offline. The following steps can help you to know how to do that. 

Step 1: Fill out the PAN change request application form mentioning the PAN number to be surrendered and submit it to the nearest UTI or NSDL TIN facilitation centre.

Step 2: Write a letter to the Assessing Officer with personal details, PAN card numbers, and details of the duplicate PAN card being surrendered.

Step 3: Enclose a copy of the duplicate PAN to be surrendered along with the acknowledgement from the NSDL TIN facilitation centre.

HOW TO CHANGE/UPDATE DETAILS IN THE PAN:

Apply for a new PAN to update or correct the details. If you fall into this category, understand that updating your details on the existing PAN is possible. Use the steps below to change the details in your current PAN card rather than reapplying. 

Step 1: Visit the official NSDL website to initiate the PAN correction process. NSDL is an authorized entity for PAN issuance and correction.

Step 2: Select the ‘PAN Services’ section on the website and click ‘Apply’ under ‘Changes or Correction in PAN Data.’

Step 3: Complete the PAN correction form with accurate details, including your PAN number and the corrections you want to make.

Step 4: Submit supporting documents such as a marriage certificate or gazette notification for a name change, depending on the required correction.

Step 5: Pay the fee for PAN correction by using online methods like credit/debit cards, net banking, or demand drafts.

Step 6: Use the Aadhaar OTP to authenticate your details during correction.

Step 7: After completion, you will receive an acknowledgement receipt with a 15-digit number. Use this number to track your PAN correction application on the NSDL website.

CONCLUSION:

As already mentioned, having multiple PAN cards is legally wrong. It does not matter whether you get that intentionally or accidentally; you must return the additional one. Otherwise, it leads to legal complications and financial confusion. We have covered the consequences and how to surrender the additional PAN card online and offline. If you want to change the details in the paragraph, you don’t need to apply for a new one, instead use the steps mentioned in this article to update the appropriate details.

Note: This article is write for general informational purposes only. It is not intended to serve as a recommendation, consultation, or advice.

AGRICULTURAL INCOME TAXATION IN INDIA

A Comprehensive Overview

Agriculture remains the backbone of India's economy, serving as the primary source of livelihood for a significant portion of the rural population. Beyond sustaining millions of families, it also fulfills the nation’s essential food requirements. To support this critical sector, the government has implemented various policies, schemes, and incentives, including tax exemptions on agricultural income.

While the tax exemption on agricultural income is a well-known aspect, the broader framework of agricultural income taxation involves several nuances. This article provides a detailed exploration of the legal provisions governing agricultural income tax in India.

 

Defining Agricultural Income

Under the Income-tax Act, agricultural income is classified into three main categories:

1. Rent or Revenue from Agricultural Land

Rent refers to the payment received for granting the right to use agricultural land. This also includes other sources of income related to the land, such as fees for lease renewals. However, income generated from the sale of agricultural land does not fall within the definition of agricultural income.

2. Income from Agricultural Land

Although the Act does not explicitly define "agriculture," the Supreme Court in the case of CIT v. Raja Benoy Kumar Sahas Roy identified two types of operations:

• Basic Operations: These involve direct activities on the land, such as cultivation, tilling, sowing, and planting.
• Subsequent Operations: These include processes like preservation, enhancement, and making the produce market-ready.

Even saplings or seedlings from nurseries qualify as agricultural income, even if they are grown without direct land operations. Additionally, income from processes that make agricultural produce marketable (e.g., processing tea, coffee, or rubber) is partly considered agricultural income, with prescribed rules distinguishing the agricultural and non-agricultural components.

3. Income from Farm Buildings

For income from farm buildings to qualify as agricultural income, two conditions must be met:

• The building must be located near agricultural land.
• The land must either be assessed for revenue by the government or situated outside a specific distance from municipalities, depending on population thresholds.

 

Tax Implications and Partial Integration

While agricultural income is generally exempt from income tax, the system of partial integration ensures indirect taxation of non-agricultural income at higher rates. This applies to individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), and artificial juridical persons if:

• Net agricultural income exceeds ₹5,000.
• Non-agricultural income surpasses the basic exemption limit under the Income-tax Act.

 

ITR Filing and Tax Benefits

• Agricultural income up to ₹5,000 can be reported using ITR-1 (Sahaj). For income exceeding ₹5,000, taxpayers must use ITR-2.
• Section 54B provides relief on capital gains arising from the sale of agricultural land if the proceeds are used to acquire new agricultural land within two years. Eligible taxpayers include individuals and HUFs, provided the land was used for agricultural purposes prior to the sale.

 

Union Budget Highlights

The Union Budget 2023-24 earmarked significant funds for the Ministry of Agriculture and Farmers Welfare. Notably, it announced the establishment of an Agriculture Accelerator Fund to support innovation and rural startups, aimed at driving growth and sustainability in the sector.

 

Conclusion

Agricultural income taxation in India reflects the government’s commitment to supporting the agriculture sector while balancing revenue considerations. Although agricultural income enjoys a tax-exempt status, related provisions such as partial integration and specific tax benefits ensure fairness and compliance. Understanding these nuances is essential for individuals and entities engaged in agricultural activities to fully leverage available exemptions and incentives.

  

Central Government Waives Excess Late Fees for Non-Filing of FORM GSTR-9C for FY 2017-18 to 2022-23, Subject to Submission by March 31, 2025

 GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

Notification No. 08/2025 - Central Tax

New Delhi, the 23rd January, 2025

S.O. 419(E).— In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby waives the amount of late fee referred to in section 47 of the said Act in respect of the return to be furnished under section 44 of the said Act, for the financial years 2017-18 or 2018-19 or 2019-20 or 2020-21 or 2021-22 or 2022-23, which is in excess of the late fee payable under section 47 of the said Act upto the date of furnishing of FORM GSTR-9 for the said financial year, for the class of registered persons, who were required to furnish reconciliation statement in FORM GSTR-9C along with the annual return in FORM GSTR-9 for the said financial year but failed to furnish the same along with the said return in FORM GSTR-9, and furnish the said statement in FORM GSTR-9C, subsequently on or before the 31st March, 2025:

Provided that no refund of late fee already paid in respect of delayed furnishing of FORM GSTR-9C for the said financial years shall be available.

[F. No. CBIC-20001/15/2024-GST]

RAUSHAN KUMAR, Under Secy.

MANOJ KUMAAR BHAGAT: A Very Very Happy 76th Republic Day

MANOJ KUMAAR BHAGAT: A Very Very Happy 76th Republic Day:   On this special day, let's celebrate the spirit of unity, diversity, and freedom that defines our great nation.  A thousand salutes to...

A Very Very Happy 76th Republic Day

 

On this special day, let's celebrate the spirit of unity, diversity, and freedom that defines our great nation. 

A thousand salutes to this amazing nation of ours. May it become even more prosperous. Happy Republic Day !!! 🇮🇳🇮🇳🇮🇳

Best Regards,

Manoj Kumaar Bhagat

Compliance Checklist for December 31, 2024

 December is a month of festive cheer, last-minute gift shopping, and… tax deadlines! While March is often synonymous with tax planning, December has emerged as equally important for taxpayers. So, grab a cup of coffee, and let’s walk through the key compliance tasks and deadlines for December 31, 2024.

 

1. Vivad Se Vishwas Scheme (VSVS-2024): Resolve Tax Disputes

Deadline: December 31, 2024

The government’s Vivad Se Vishwas Scheme (VSVS-2024) offers taxpayers an opportunity to resolve pending tax disputes. Think of it as a peace treaty for your tax battles.

• Benefits:
• Save 10% on tax disputes.
• Save 5% on penalty-related appeals.
• Missed Deadline Consequences:
• Taxpayers will have to return to litigation.
• Potentially higher costs if disputes are settled after March 31, 2025.

This scheme is a golden opportunity to close disputes amicably while saving time and money.

 

2. Belated Income Tax Return (ITR) – Section 139(4): Better Late Than Never

Deadline: December 31, 2024

Missed the original ITR filing deadline? Don’t panic—December 31 is your second chance to file.

• Late Filing Fees:
• ₹5,000 for most taxpayers.
• ₹1,000 for incomes below ₹5 lakh.
• Risks of Late Filing:

1. Loss Carry-Forward Denied:
• Losses from any source (except house property) cannot be carried forward if ITR is filed after the due date.
2. Denial of Deductions:
• Deductions under Sections 80HH, 80RRB, 80IA, etc., and benefits for charitable trusts are not available for late filers.

By filing before December 31, you can avoid penalties and preserve your tax benefits.

 

3. Revised Income Tax Return (ITR) – Section 139(5): Fix Those Oops Moments

Deadline: December 31, 2024

Mistakes happen, even with taxes. If you’ve forgotten to include certain income or claim deductions, the Revised Return option is your savior.

• Why Revise?
• Add overlooked income (like fixed deposit interest or capital gains).
• Claim unclaimed TDS credits.
• Fix genuine errors (like typos or missed deductions).
• Advantages of Revising:
• No late fees.
• Unlimited revisions allowed before the deadline.
• Returns can be revised even after they’ve been processed or refunds issued.

Taking the time to correct errors ensures compliance and avoids future complications.

 

4. Updated Income Tax Return (ITR-U) – Section 139(8A): The "Oops, I’m Late Again" Option

For Taxpayers Who Miss All Deadlines:

If you missed even the belated or revised return deadlines, the Updated Return (ITR-U) is your final option—albeit with a cost.

• Conditions to File ITR-U:
• Allowed only if the taxpayer is paying more tax.
• Cannot claim refunds, carry-forward losses, or reduced taxes.
• Additional Tax Rates:
• 25% extra on dues for filings within 12 months.
• 50% extra for filings beyond 12 months.
• Ineligibility:
• Taxpayers involved in tax raids or surveys.
• Cases with ongoing assessment or reassessment proceedings.

Remember, this is a one-time opportunity. Once filed, you cannot revise an Updated Return for the same year.

 

5. Disclosure of Foreign Assets in ITR

Taxpayers must disclose any foreign assets in their original, belated, or revised ITR forms. Failure to disclose can lead to penalties. Note: Updated Returns (ITR-U) do not provide immunity for non-disclosure of foreign assets. Ensure compliance to avoid severe consequences.

 

31st December: File & Smile

In tax matters, earlier is always better. Filing on time or fixing mistakes before December 31 can save you money, stress, and potential legal headaches. So, revisit your ITR for FY 2023-24, make any necessary corrections, and file before the year’s end.

May your December 31 be stress-free and compliant. Happy filing!