Andhra Pradesh GST Notification: Waiver of Interest and Penalty Explained

Andhra Pradesh GST Amnesty 2025: Key Highlights of Waiver on Interest and Penalty

In a significant move aimed at reducing legacy disputes and improving compliance, the Government of Andhra Pradesh has notified an amnesty scheme under G.O. Ms. No. 94, dated March 13, 2025, offering a waiver of interest and penalty under the APGST Act, 2017.

Who Can Avail the Amnesty?

The relief is available to registered persons who have received:

Notices or orders under Section 128A (related to pending dues or non-compliance), or
Revised tax determinations under Section 74 (following appellate or court directions).

Implementation Timeline

Scheme effective from: November 1, 2024
Last date for payment:
- For Section 128A cases: On or before March 31, 2025
- For Section 74 redeterminations: Within six months from the date of the appellate or court order

Scope of Waiver

What’s waived: Entire interest and penalty, provided the full tax amount is paid within the prescribed window
What’s not covered:
- Late fees
- Redemption fines

Conditions for Availing the Waiver

Full tax payment is mandatory: Waiver applies only if the entire tax demand is discharged for all periods/issues covered in the notice or order.
Applies across multiple periods or issues: Even if notices span several periods or contain diverse issues, the benefit is available if full tax is paid for each.
Appellate cases: If an appellate authority enhances the tax liability, the benefit is available if the enhanced tax is paid within 3 months of the appellate order.
Mode of payment:
- Through electronic cash ledger or Input Tax Credit (ITC)
- RCM liabilities: Must be paid in cash only
Linking the payment correctly:
- Use "payment towards demand" or Form GST DRC-03 to make payment
- Link it to the corresponding order via Form GST DRC-03A on the GST portal to ensure proper reconciliation and closure

Clarifications from Authorities

Tax already recovered by department (e.g., via bank attachment or third-party): Will be considered valid payment for waiver purposes
Cases where tax is already paid but interest/penalty remains: Eligible for waiver
Multiple issues across multiple periods: As long as entire tax for eligible periods is paid, the waiver applies
Transitional credit disputes under Section 73: Covered under the waiver
IGST and Compensation Cess: Included in the waiver, if part of the demand
Section 16(4) ineligibility cases: Waiver available on net payable amount after allowable reductions
No partial payments: Partial discharge of tax liability does not qualify for any partial waiver
Appeal withdrawal mandatory: Any appeal or court challenge must be withdrawn before opting for the amnesty

How to Comply

Make payment through the GST portal (via DRC-03 or payment towards demand).
Link it to the specific demand/order using the newly introduced Form DRC-03A.
In case of technical issues, raise a grievance under “DRC-03A-Filing” category on the GST Grievance Redressal Portal.

Judicial Precedents Cited in the Context

Madras HC – Modern India Products: Clarified that exporters are entitled to IGST refunds on zero-rated exports, even where duty drawback is claimed; administrative circulars cannot override statutory rights.
Gauhati HC – X'SS Beverage: Ruled that fruit juice-based carbonated beverages should be taxed at 12%, not 28%, based on their essential character and composition—not just their carbonation.

Takeaway

For businesses facing long-pending GST disputes in Andhra Pradesh, this amnesty offers a time-bound opportunity to clear liabilities by paying only the core tax dues—without additional burden of interest or penalties. However, eligibility hinges on timely full payment and procedural compliance, particularly linking payments correctly through DRC-03A. Taxpayers with complex or multi-period issues may consider consulting professionals to ensure proper navigation.