Namaste!

We know that navigating the complexities of Goods and Services Tax (GST) can be challenging for businesses like yours. That's why we're excited to share insights on the proposed Section 128A from the Union Budget 2024—a potential game-changer in alleviating tax burdens for taxpayers.

Why is Section 128A Important for You?

This provision brings several significant benefits, including:

1. Waiver of Interest and Penalty:

Under Section 128A, a key provision allows for the waiver of interest and penalties for taxpayers who have paid their outstanding tax liabilities. This waiver is applicable in the following scenarios:

i. In cases where a show-cause notice has been issued but a final order is pending determination.

ii. Instances where an adjudication order is in place without an Appellate Authority or Revisional Authority's Order.

iii. When there is an Appellate Authority or Revisional Authority order, but the Tribunal has not reached a decision.

2. Addressing Fraud Allegations:

The provision also covers instances initially processed under Section 74 (which deals with allegations of fraud or any willful misstatement or suppression of facts to evade tax). If it is subsequently determined that such allegations were unfounded and the case is transferred to Section 73, taxpayers are still eligible to avail themselves of the benefits outlined in Section 128A.

3. Withdrawal of Appeals:

Taxpayers intending to benefit under this scheme must withdraw any pending appeals lodged with the Appellate Authority, Appellate Tribunal, High Court, or Supreme Court. Additionally, they must submit a formal declaration confirming that no future appeals will be filed against the matter at hand.

4. No Refunds for Previous Payments:

It is important to note that any penalties or interest previously paid will not be eligible for a refund under this program. However, the potential waiver of outstanding amounts presents a significant opportunity for relief.

5. Exclusions for Erroneous Refunds:

The scheme does not apply to cases involving erroneous refunds; such claims will not receive the benefits outlined in this proposal.

Actionable Steps to Leverage Section 128A

DOST CA Vikash Dhanania is looking forward to forthcoming government clarifications regarding this initiative with a sense of optimism. He is confident that this scheme will alleviate the tax burden on taxpayers, ultimately benefiting the wider business community. He advises on the following actionable steps to take advantage of the benefits offered by Section 128A:

1. Review Outstanding Tax Liabilities:

Assess any outstanding tax liabilities to ascertain eligibility for the waiver of interest and penalties under Section 128A.

2. Monitor Pending Appeals:

Identify any pending appeals with the Appellate Authority, Appellate Tribunal, High Court, or Supreme Court that may need to be withdrawn to benefit from the provisions of Section 128A.

3. Prepare Formal Declarations:

Draft and submit a formal declaration confirming that no future appeals will be filed against the matters in question as required by the scheme.

4. Consult with a GST Expert:

Engage with your GST consultant to gain insights and clarifications regarding the implementation of Section 128A and its specific benefits for your business.

5. Stay Informed: 

Keep abreast of any government clarifications or updates related to Section 128A to ensure compliance and maximize benefits.

6. Contact GST Support:

Contact your GST Consultant for personalized assistance in navigating GST challenges and understanding how to leverage Section 128A effectively.

These steps enable businesses to strategically position themselves to take advantage of the potential benefits offered by Section 128A.

Ready to Leverage Section 128A?

Businesses can leverage the provisions outlined in Section 128A to effectively address tax disputes and request waivers on penalties and interest. It is pivotal for businesses to gain a comprehensive understanding of this scheme, empowering them to position themselves strategically for maximum benefit.

For a comprehensive understanding of how Section 128A can benefit your business and help address your GST challenges, please don’t hesitate to contact us!

📞 90 8888 2000 / 3000

📧 support@gstdost.com

Let us collaborate to navigate your GST challenges efficiently and open doors to potential tax relief.

Looking forward to hearing from you!