Understanding GST Form SPL-02: Eligibility, Application Procedure, and Deadlines

The 53rd GST Council meeting addressed a long-standing request from traders and manufacturers for a waiver of interest and penalties under Section 73, applicable for the financial years 2017-18 to 2019-20. Consequently, an amnesty scheme was announced, introducing a new facility: GST Form SPL-02, accessible on the GST portal. This document provides a comprehensive overview of the Section 128A waiver scheme and the functionalities of Form SPL-02.

What is GST Form SPL-02?

Form SPL-02, found on the GST portal, allows eligible taxpayers to request a waiver of penalties, interest, or both, which were imposed by authorities as part of a tax demand under Section 73. This applies in scenarios where the GST officer has not yet issued any revision orders for an appeal under Sections 107(1) or 108(1), or if an appeal is currently awaiting resolution at the Tribunal (Section 112) or the High Court (Section 113).

Who can file GST Form SPL-02?

According to Section 128A(1) of the CGST Act, registered taxpayers falling into one of three categories are eligible to apply for an interest or penalty waiver (or both) using GST Form SPL-02:

1. Individuals who received a demand order under Section 73 and subsequently filed an appeal, where the authority has not yet issued a decision on the first appeal under Section 107 of the CGST Act.
2. Those who received a decision on their initial appeal under Section 107 of the CGST Act but then filed a second appeal, for which no order has yet been released under Section 113 of the CGST Act.
3. Taxpayers who initially received a demand notice under Section 74 of the CGST Act, but whose demand notice was later reclassified under Section 73.

GST Form SPL-02 Timeline

As per recent guidance from the GSTN, there are two distinct timelines for the payment of demanded tax and the submission of applications via SPL-02.

Payment Deadlines:

• For taxpayers in the first and second categories mentioned above, the final payment date is March 31, 2025.
• For taxpayers in the third category (reclassification under Section 73), the payment deadline is six months from the date the reclassification order was issued.

Waiver Application Submission Deadlines (Amnesty Scheme):

• Taxpayers in the first and second categories must submit their applications by June 30, 2025 (three months after March 31, 2025).
• For cases involving reclassification under Section 73, the application must be submitted within six months from the date the reclassification order was communicated.

Step-by-Step Process to File GST Form SPL-02

Here is a detailed guide for applying for a waiver under the amnesty scheme using Form SPL-02:

Step 1: Access the GST portal.

Step 2: Navigate to the My Applications section, found under the Services tab (Services > User Services > My Applications).

Step 3: On the My Applications page, select 'Apply for Waiver Scheme under Section 128A' from the Application Type dropdown menu. If this is your first time applying for the waiver scheme, click the New Application button.

Step 4: After clicking New Application, two form options will appear. Choose SPL-02 and then click the Create Application button.

Step 5: Clicking Create Application will display a questionnaire. Some fields in this questionnaire are mandatory (marked with an asterisk). Complete all required questions by selecting 'Yes' or 'No' radio buttons. Once finished, click the NEXT button at the end.

Step 6: The actual SPL-02 form will then appear, divided into four main sections:

• Table 1: Contains essential taxpayer details, such as GSTIN, mobile number, and email ID.
• Table 2: Requires information about the demand order, including its order number and issuance date.
• Table 3: This section has two subsections:
  • Table 3A: For declaring the amount claimed as per the demand order for financial years 2017-18, 2018-19, and 2019-20.
  • Table 3B: For providing details on Input Tax Credits (ITCs) that were initially denied under Section 16(4) but later became eligible under Sections 16(5) and 16(6).
• Table 4: Pertains to tax payments made against the demand order. Taxpayers must link payments by mapping the relevant DRC-03 (voluntary payment of tax demand).
  • If tax demand orders were issued via the GST portal and payments were made using the 'Payment towards Demand' option, these payment details will be automatically populated, eliminating the need for manual entries in Table 4.
  • For demand orders issued through the GST portal where voluntary payments were made via the portal, navigate to Services > User Services > My Applications > FORM GST DRC-03A to access specific DRC-03 information. Once mapped, Table 4 will auto-populate with the payment details.
  • For tax demands issued offline (outside the GST portal) with payments made through DRC-03, the Payment Acknowledge Reference Number (ARN) will be accessible in Table 4. The taxpayer needs to select one or more applicable ARNs from the provided dropdown menu.

Documents Required to File Form SPL-02

To submit GST Form SPL-02, taxpayers need to upload DRC-03 documents for each voluntary payment made outside the GST portal. If payments were processed through the GST portal, separate document uploads are not necessary, as the portal automatically populates these details once the payment is mapped. Form SPL-02 supports uploading a maximum of five documents, with each file limited to 5 MB in size.

Key Benefits of Filing GST Form SPL-02

The primary advantage of applying for a waiver using Form SPL-02 is the reduction in financial burden associated with the payment of interest, penalties, or both, as stipulated by a tax demand order.