Introduction
The GST Amnesty Scheme under Section 128A of the CGST Act, 2017 was India's most significant GST dispute relief mechanism since the regime launched in 2017. It offered businesses a one-time opportunity to settle tax demands for FY 2017-18, 2018-19, and 2019-20 without paying interest or penalties — by paying just the outstanding tax.
In 2026, three questions dominate: Is the scheme still open? What happens to pending applications? And what relief, if any, remains available?
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What The Scheme Offered
The GST Amnesty Scheme under Section 128A allows eligible taxpayers to settle past Section 73 tax demands by paying the principal tax and having interest and penalties waived, if the conditions are met and the application is approved. The scheme was time-bound, with deadlines in 2024-2025, and is closed to new applications as of March 2026, with no extension announced.
Key parameters:
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Critical Conditions — All Must Be Met
Partial payments do not qualify. Previously paid interest or penalties are non-refundable under the scheme. Taxpayers must withdraw pending appeals or writ petitions before filing the waiver application. Payment must be made through the Electronic Liability Register (ELR), not through ITC in all cases.
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Status In 2026 — Three Scenarios
Scenario 1: Applied and approved before March 2026 Scheme benefit is confirmed. Tax demand stands settled. No further liability on waived interest/penalty.
Scenario 2: Applied but processing pending as of May 2026 References to the "GST Amnesty Scheme 2026" usually relate to pending applications, processing delays, or ongoing litigation — not a new scheme. If your application was filed before the deadline, the proper officer must process it. Approach the jurisdictional GST authority for status.
Scenario 3: Did not apply — missed the window No route to the Section 128A amnesty. However, voluntary payment of tax + application for waiver of penalty only (under existing provisions) may be possible in specific circumstances — consult a GST practitioner.
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What Still Works In 2026 — Alternative Routes
Route Availability Conditions
Voluntary compliance for Section 73 demands (beyond amnesty period) Open Pay tax + reduced penalty of 10% if paid within 30 days of SCN
Section 74 demand — 25% penalty reduction Open Pay tax + 25% penalty before adjudication
GST Appeal (GSTAT) Open — GSTAT now operational File within 3 months of order
Pre-deposit for appeal Open 10% pre-deposit of disputed tax
High Court writ Open For legal/constitutional challenges to demand orders
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Pending Amnesty Applications — Practical Guidance
If your GST SPL-01 or SPL-02 is pending processing:
1. Track status on the GST portal under "My Applications"
2. If no action within 30 days of application, file a written reminder to the proper officer
3. If the proper officer has neither accepted nor rejected within prescribed time, the waiver may be deemed as approved — verify the specific notification provision applicable to your case.
4. If rejected improperly, appeal to the Appellate Authority within 3 months
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Author'S Caution
The Section 128A scheme closed without extension. Professionals and businesses who missed the deadline must now rely on: regular appeal mechanisms, GSTAT jurisdiction, or writ petitions for legal challenges to the underlying demand. There is currently no indication of a new amnesty scheme being launched — any such claims circulating on social media or messaging groups should be verified exclusively against CBIC notifications.
Source: Tally Solutions; CBIC Notification No. 21/2024-Central Tax; CashFlo.io; TaxTMI; Section 128A, CGST Act 2017
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