GSTN Issues Advisory For Taxpayers Seeking Relief Under GST Amnesty Scheme

The Goods and Services Tax Network (GSTN) has recently released an important advisory for taxpayers planning to benefit from the GST Amnesty Scheme before the application window shuts on June 30, 2025.

The scheme, launched under Section 128A, was aimed at offering a full waiver of interest and penalties on disputed tax amounts, given that the dues were paid in full by March 31, 2025.

As per a GSTN advisory issued on May 14, 2025, taxpayers who have paid their GST payment on March 31 also have to provide evidence for the withdrawal of their appeals. In particular, they are required to post proof of cancellation (as such, a screenshot of the appeal case file indicating that the status is “Appeal withdrawn”. This step is necessary whether we are submitting the waiver application now or editing it after it has already been submitted.

Technical Process for Appeal Withdrawal

The advisory clarified the procedure for changing the appeal status in the GST system:

In the GST system, when a Withdrawal application (APL 01W) for appeal is filed before issuance of the final acknowledgement (APL 02) by the Appellate authority, then the system automatically withdraws the Appeal application (APL 01). In such cases, the status of the appeal application will automatically change from ‘Appeal submitted’ to ‘Appeal withdrawn’.

However, if the withdrawal is initiated after the Appellate authority has issued the final acknowledgement (APL 02), the process is no longer automatic.

Withdrawal applications must be approved by the Appellate Authority after the final acknowledgement has been issued. As soon as the withdrawal application is approved by the appeal authority, the Appeal application status changes from 'Appeal submitted' to 'Appeal withdrawn'.

This procedural update is critical, as the waiver scheme under Section 128A clearly states that “any appeal against the requisite demand order should not remain pending with the Appellate authority.”

In either scenario, whether withdrawn automatically or approved manually, the final appeal status must read “Appeal withdrawn” in order to meet the eligibility criteria for the waiver.

In order to finish the waiver application form, taxpayers are supposed to upload a screen shot confirming the status of the withdrawal. This screenshot should be taken from the appeal case and show the words, “Appeal withdrawn.”

It is mandatory for the taxpayers to upload a screenshot of the appeal case folder displaying the status as “Appeal withdrawn” to complete the process.