GST WEEKLY UPDATE : 51/2024-25 (23.03.2025) By CA Vipul Khandhar

1. The taxpayers can file waiver applications in SPL 01/02 till 30.06.2025.

Issue in filing applications (SPL 01/SPL 02) under waiver scheme (Mar 21st, 2025):

1. Grievances are raised by taxpayers regarding difficulties faced while filing the waiver applications. Following grievances faced by taxpayers have come to the notice of GSTN and team is working to resolve the issues at the earliest.
2.    Order number is not available in dropdown for selection in SPL 02.
3. Order details are not getting auto populated after selection of a particular order in SPL 02.

iii.   Payment details are not getting auto populated in Table 4 of SPL 02.

1. After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards Demand” for that order. Also, taxpayer is not able to adjust the amount paid through DRC 03, against the same demand order, using DRC 03A.
2. Not able to withdraw the Appeal applications (APL 01) filed before First Appellate authority against a particular order.

2.  It is learned that there is a misconception among the trade that the last date to file waiver application is 31.03.2025. In this regard, it may be noted that the last date to file waiver applications is not 31.03.2025. As per Rule 164(6) of CGST Rules, 2017, the taxpayers have to file waiver applications within a period of three months from the notified date. Therefore, the taxpayers can file waiver applications in SPL 01/02 till 30.06.2025.

3.   However, as per Notification 21/2024-CT dated 8.10.2024, the due date for payment of tax payable for availing wavier scheme is 31.03.2025.Therefore, the taxpayers are advised to pay the requisite amount within due date using “Payment Towards Demand”functionality in GST portal.

4.   In case any difficulty is faced in using the said functionality, then the taxpayers are advised to make a Voluntary Paymentusing Form DRC-03under category ‘Others’. After completing the payment, they can submit the Form DRC-03A to link the payment made in DRC-03 with the relevant demand order.

5.  If Payment details are not auto populated in Table 4 of SPL 02, it is advised to verify the same in electronic liability ledger on GST portal. Then the taxpayer can proceed for filing waiver application. The navigation path to access the electronic liability ledger is Login>> Services>> Ledgers>> Electronic Liability Register

Taxpayers are advised to make the payment on or before 31.03.2025 and file the waiver application on or before 30.06.2025. For any other issues faced, the taxpayers are advised to raise grievance ticket immediately so that issue can be resolved. 

2. Kerala GST Dept issued instructions on video conferencing for personal hearings to enhance convenience and expedite the adjudication process:

The Kerala GST Department vide Circular No.07/2025-Kerala GST dated March 14, 2025, has issued instructions on video conferencing for personal hearings to enhance convenience and expedite the adjudication process. Taxpayers or their representatives can attend hearings virtually.

A personal hearing serves as a crucial safeguard, ensuring that individuals or entities facing tax charges or penalties have the opportunity to present their case. It becomes especially important in situations where an adverse decision is anticipated, allowing taxpayers to submit evidence, arguments, and explanations before a final order is issued. Upholding the principles of natural justice, it guarantees that those affected are heard before any decision is made. The Act explicitly mandates a personal hearing upon a written request from the charged party or when a decision with potentially adverse consequences is under consideration.

The authorities must adhere to the following guidelines to ensure a smooth and transparent process:

• The date and time of the hearing along with a link for the video conference with meeting id and password shall be informed in advance to the taxpayer or their consultant/counsel through the official email or electronic media of the adjudicating authority/appellate authority, giving the details of the officer-in-charge who would provide assistance to the party, for conducting the virtual hearing. So also an intimation by phone/SMS may also be given to the taxpayer to ensure his presence.
• The link should not be shared with any other person without the approval of the adjudicating/appellate authority.
• The notices for personal hearing issued by the Department shall also be served through email in all cases where email id is available to enable the taxpayers to access the notices without delay.
• Using these credentials, the taxpayer or his representative or both of them can attend the hearing. To facilitate this, the taxpayer or his representatives may be instructed to confirm his appearance in advance by reply email.
• The advocate/consultant/authorized representative, appearing on behalf of the party in virtual hearing, should file his authorization letter along with a copy of his photo ID card and contact details to the above-mentioned authority/authorities through the official e-mail address of the concerned authority after scanning the same.
• Virtual hearing through video conference shall be held from the office of the said authority using desktops or laptops or tablets or phones or through any video conference facility setup in the office.
• The virtual hearing through video conference will be conducted through any available secured applications mutually decided by the authority concerned and the taxpayer. The taxpayer/representative should download such application in their Desktop/Laptop/mobile phone beforehand for ready connectivity during virtual hearing and join the video conference at the time allotted to them, as mentioned above.
• In case where the party/ his representative wishes to participate in the virtual hearing proceeding along with their advocate, they should do so under proper intimation to the adjudicating authority/appellate authority as mentioned at point (ii) above. They may participate in virtual hearing along with their advocate/authorized representative or join the proceedings from their own office.
• The submissions made by the appellant or their representative through the video conference will be reduced in writing and a statement of the same will be prepared, which shall be known as ‘record of personal hearing’ or ‘hearing note’. A soft copy of such record of personal hearing in PDF format will be sent to the taxpayer through email ID provided by the taxpayer/representative, within one day of such hearing.
• If the taxpayer/their representative wants to modify the contents of the e-mailed ‘record of personal hearing’/’hearing note’, they can do so and sign the modified record, scan and send back the signed ‘record of personal hearing’/’hearing note’ to the adjudicating authority/appellate authority.
• If, however, the taxpayer/their representative does not resend the above e-mailed ‘record of personal hearing’/’hearing note’ within 3 days of receipt of such e-mail as at point (vii) above, it will be presumed that they agree with the contents of e-mailed ‘record of personal hearing’/’hearing note’ and adjudicating/appellate authority will proceed to decide the case accordingly. No modification in e-mailed ‘record of personal hearing’/’hearing note’ will be entertained after 3 days of its receipt by the taxpayer/their representative. The date of receipt of the email by the adjudicating authority/appellate authority will not be counted for this purpose.
• The record of personal hearing’/’hearing note’ submitted in this manner shall be deemed to be a document for the purpose of relevant statutes under which the hearing is conducted read with Section 4 of the Information Technology Act, 2000.
• If the taxpayer/representative prefers the authority to consider any document, including additional documents, during the virtual hearing, he may do so by sending the scanned copy of such self-attested document via official mail to the authority concerned before the virtual hearing.

Any official representing the Department’s side can also participate in the virtual hearing through video conferencing.

3. AAR & Judicial Decisions:

            (i) The Hon’ble Bombay High Court Decision Regarding without considering the reply of DRC-01A, DRC-1 SCN cannot be issued.

             (Applicant – FSM Education Pvt Ltd)

In the case of Bombay High Court in the case of FSM Education Pvt Ltd v. Union of India [Writ Petition (L) No. 28229 of 2024 dated January 21, 2025] held that no adjudication orders were to be passed where a pre-consultation notice is issued to an assessee and assessee had responded to same. Nevertheless, a subsequent Show Cause Notice (“SCN”) was issued to assessee, while department could adjudicate said SCN.

(ii) The Hon’ble Andhra Pradesh High Court in Writ Petition No. 28229 of 2024 held as under:

Directed that, though hearing on the Impugned SCN can proceed, the Respondent shall not pass any adjudication order on the Impugned SCN until further orders.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(The author is  a well known Chartered Accountant practising at Ahmedabad on direct and indirect taxes)