Introduction
In a significant move to facilitate the “Waiver Scheme” under Section 128A of the CGST Act, 20171, the GSTN2 has issued Advisory No. 602 on May 14, 2025. This advisory clarifies the procedure for taxpayers to withdraw pending appeals against tax-demand orders, a crucial prerequisite for availing the benefits of the waiver scheme. The scheme aims to formalize the requirement that no appellate remedies are actively being pursued by the concerned taxpayer. It outlines the important amnesty scheme for a sec 128A and grants a total waiver of pending interest and penalty amount if the tax amount is paid by an eligible taxpayer on or before and June 30‘
The GSTN has issued this important advisory specifically for taxpayers who wish to apply for the GST Amnesty Scheme under Section 128A on or before the deadline of June 30, 2025. The GST Amnesty Scheme, as per Section 128A, grants a total waiver of pending interest and penalty amount if the tax dispute amount is paid by an eligible taxpayer on or before March 31, 2025.
The advisory meticulously outlines two distinct scenarios for appeal withdrawal, ensuring clarity and ease of compliance for taxpayers:
- Pre-Acknowledgment Withdrawal: If a taxpayer files a withdrawal application (APL 01W) before the GST portal generates its final acknowledgment (APL 02) for the original appeal, the system will automatically update the status of the initial appeal (APL 01) from “Appeal submitted” to “Appeal withdrawn.” This automated process ensures a swift and seamless withdrawal.
- Post-Acknowledgment Withdrawal: Conversely, if the withdrawal application is submitted after the final acknowledgment has been generated, the appeal’s status will remain “submitted” until the appellate authority manually approves the withdrawal. Upon receiving this manual approval, the portal will then update the status to “Appeal withdrawn.”
In both instances, the ultimate goal is to achieve the “Appeal withdrawn” status. Once this status is reflected on the portal, the taxpayer is considered to have met the scheme’s fundamental requirement of having no pending appeals. To demonstrate compliance and proceed with their waiver application, taxpayers are advised to upload a screenshot of their appeal case folder, clearly showing the “Appeal withdrawn” status.
Conclusion
This new advisory from GSTN represents a vital step in simplifying the process for taxpayers to unconditionally forgo appellate remedies and become beneficiaries of the waiver scheme. By clearly defining the mechanism for appeal withdrawal, the GSTN is not only formalizing the existing system but also empowering taxpayers to efficiently navigate the compliance landscape. This streamlined approach is expected to reduce administrative burden and encourage greater participation in the waiver scheme, ultimately contributing to a more effective and taxpayer-friendly GST regime.
Citations
- Central Goods and Services Tax (CGST) Act, 2017
- Goods and Services Tax Network
Expositor(s): Adv. Archana Shukla
