Relief Taxpayers GST AMNESTY SCHEME
The Indian government has launched several amnesty schemes for the Goods and Services Tax (GST) in order to provide relief to taxpayers who have not complied with the GST laws. The purpose of these schemes is to reduce the compliance burden on taxpayers and encourage them to come forward and rectify any non-compliances.
One such scheme allowed taxpayers who had not filed their GST returns during a specific period to file their returns without paying any late fees or penalties. However, they were required to pay the due taxes for the period, along with interest at a reduced rate of 9% instead of the usual rate of 18%.
In 2021, the Central Board of Indirect Taxes and Customs (CBIC) launched the “GST Amnesty Scheme, 2021”, which was applicable to taxpayers who had not filed their GST returns for the period of July 2017 to April 2021. Due to the COVID-19 pandemic, the government of India reintroduced the GST Amnesty Scheme in 2021. To help the public tackle the situation, the government extended the “GST Amnesty Scheme for 2022”.
All about GST Amnesty Scheme 2023
The government has reintroduced the GST Amnesty Scheme to provide relief to taxpayers who failed to file GSTR-3B returns for previous tax periods. This scheme was first introduced in 2018 to cover the periods from July 2017 to September 2018, with a one-time extension provided until March 31, 2019. Due to the COVID pandemic, tax professionals and industry leaders urged the government to reopen the scheme, and in 2020, the government finally acceded to their request.
On June 1, 2021, the Central Board of Indirect Taxes and Customs (CBIC) implemented the GST Amnesty Scheme for the second time. This scheme applies to all pending GSTR-3B returns for tax periods between July 2017 and April 2021. The latest updates from the February 2023 GST Council meeting reveal that the council has recommended implementing the GST amnesty scheme for taxpayers who have not yet filed GSTR-4, GSTR-10, and GSTR-9 returns for past financial years. Additionally, the council suggested providing relief to those whose GST registrations were cancelled by allowing them more time to revoke such cancellations. Furthermore, authorities would not invoke Section 62 for the failure of certain taxpayers who did not furnish returns by the time limit defined in the notice, provided they file on or before June 30, 2023.
In response to the latest recommendations from the GST Council, the CBIC issued fresh Central Tax notifications on March 31, 2023, to implement the 2023 GST amnesty scheme. This scheme offers a lifeline to taxpayers who have struggled to meet their GST compliance requirements and provides them with the opportunity to rectify their past errors.
One of the main benefits of the GST Amnesty Scheme is the relief it offers in terms of late fees. Taxpayers who file their pending returns under the scheme will not have to pay any late fees, which can add up to significant amounts. This relief can be particularly useful for small and medium-sized businesses that may have struggled to maintain their GST compliance in the face of financial difficulties caused by the pandemic.
However, while the GST Amnesty Scheme offers a lifeline to taxpayers, several issues remain unresolved. For example, some taxpayers have faced technical glitches while trying to file their returns, which has prevented them from meeting their GST compliance requirements. Additionally, the complexity of the GST system and the frequent changes in rules and regulations have made it difficult for taxpayers to keep up with the requirements. To address these issues, the government may need to consider streamlining the GST system and simplifying the compliance process.
In conclusion, the GST Amnesty Scheme offers much-needed relief to taxpayers who have struggled to meet their GST compliance requirements due to the pandemic and other factors. With the latest updates and notifications from the government, taxpayers can avail themselves of this scheme and rectify their past errors without incurring significant late fees. However, the government must also address the underlying issues that have made GST compliance a challenging task for many taxpayers.
Condition to avail of the GST amnesty scheme:
On March 31, 2023, the Central Board of Indirect Taxes and Customs (CBIC) issued fresh Central Tax notifications to implement the 2023 GST amnesty scheme. This scheme provides relief to taxpayers who have not yet filed their GSTR-4, GSTR-10, and GSTR-9 returns for past financial years, as well as those whose GST registrations were canceled and need more time to revoke such cancellations. Additionally, the authorities will not invoke Section 62 for certain taxpayers who did not furnish returns by the time limit defined in the notice, provided they file on or before June 30, 2023.
The 2023 GST amnesty scheme is a crucial lifeline for taxpayers who may have struggled to meet their GST compliance requirements due to the pandemic and other factors. It offers them the opportunity to rectify their past errors without incurring significant late fees, which can add up to substantial amounts. With the issuance of fresh Central Tax notifications by the CBIC, taxpayers can now avail themselves of this scheme and comply with their GST obligations in a timely manner.
Notification Number 02/2023: GSTR-4 (quarterly/annual)
Who can avail
Composition taxable persons who did not file GSTR-4 for quarters July 2017 to March 2019 or for the financial years from FY 2019-20 to FY 2021-22 on or before due dates
Amnesty benefits
- Other than Nil return – Late fee fixed at max Rs. 500 (i.e. Rs.250 each for CGST and SGST Act) per return.
- Nil return – No Late fee
Notification Number 03/2023: GST REG-21: Application for revocation of cancellation of GST registration
Who can avail
- Any taxpayer whose GST registration is canceled by the GST officer on or before 31st December 2022 for the following reasons-
– Failure to file returns for six months/two quarters continuously
– Failure to conduct business for a continuous period of six months from the date of registration - The taxpayer did not apply for revocation in REG-21 within 30 days from the date of service of the cancellation order by the GST officer.
Note: Irrespective of the fact that the appeal was filed and rejected for not meeting the time limit of revocation.
Amnesty benefits
- Can file REG-21 for an extended time periodCondition: File all pending returns with taxes, late fee,s and interest, as applicable up to the date of cancellation of GST registration.
Notification Number 06/2023: Any pending GST returns potentially attracting Section 62 of the CGST Act
Who can avail
Any taxpayer who defaulted filing of any GST return (GSTR-1/3B/4) within 30 days from the service of the assessment order issued on or before the 28th of February 2023.
Amnesty benefits
- Deemed withdrawal of best judgment assessment order under Section 62 of the CGST Act, even if an appeal is filed or decided.
- Condition: File all such pending returns with taxes, late fees,s and interest, as applicable.
Notification Number 07/2023: GSTR-9 (annual return)
Who can avail
Registered regular taxpayers mandated to file GSTR-9 from FY 2017-18 to FY 2021-22 but have not filed on or before the respective due dates.
Amnesty benefits
- Can file GSTR-9 at a concessional late fee of a maximum of Rs.20,000. (i.e., 10,000 each under CGST and SGST Act).
- The late fee is waived in excess of Rs.20,000 for delayed filing of GSTR-9 for years 2017-18 up to 2021-22.
Notification Number 08/2023: GSTR-10 (Final return)
Who can avail
Taxpayers whose GST registration is canceled within three months of the date of cancellation or date of order of cancellation, whichever is later
Amnesty benefits
- Can file GSTR-10 at a concessional late fee of a maximum of Rs.1,000. (i.e., 500 each under CGST and SGST Act).
The late fee is waived in excess of Rs.1,000 for delayed filing of GSTR-10.
