The GST Amnesty Scheme
Subject: The GST Council announced an amnesty plan on Saturday (Oct 7, 2023) allowing taxpayers to appeal demand orders issued by tax inspectors up to March 2023 until January 31, 2024.
The GST Amnesty Scheme is a provision that gives relief to taxpayers who have not filed their GST returns on time for various reasons. The scheme allows them to file their pending returns with reduced or waived late fees, interest, and penalties. The scheme also provides an opportunity for taxpayers to revoke their canceled registrations, file appeals against demand orders, and withdraw best judgment assessments. The scheme has been introduced several times by the government since the implementation of GST in 2017. The latest GST Amnesty Scheme is applicable from 1st April 2023 to 30th June 2023. Here are some of the key features and benefits of the scheme:
- For pending GSTR-3B returns from July 2017 to April 2021, the maximum late fee is as under: - Rs 500/- per return in case of tax liability, and nil in case there is no tax liability.
For pending GSTR-4 returns from July 2017 to March 2022, the maximum late fee is as under: - Rs 500/- per return in case of tax liability, and nil in case there is no tax liability. - For registrations that have been canceled on or before 31st December 2022 due to non-filing of returns, application for revocation of cancellation can be done till 30th June 2023, by furnishing the pending returns up to the effective date of cancellation and paying the applicable tax, interest, penalty, and late fee.
- For returns not filed within 30 days from the service of an assessment order under section 62 of the CGST Act issued on or before 28th February 2023, they can file the return by 30th June 2023 by paying interest and late fee, and the assessment order will be deemed as withdrawn.
- In cases where GSTR-9 (annual return) was not filed for the financial years 2017-18 to 2021-22, the same can be filed till 30th June 2023 by paying a reduced late fee of Rs. 20,000 per return. Also, from FY 2022-23 onwards the late fee for GSTR-9 has been revised based on the turnover and filing status of the taxpayer.
- Filing of appeals against demand orders issued till March 2023, can be done by 31st January 2024, by furnishing enhanced pre-deposit to the tune of 12.5% of the tax demand
The GST Amnesty Scheme is a welcome initiative by the government to provide relief and compliance ease to the taxpayers who have faced difficulties in filing of returns due to various returns. It must be noted that the scheme is available for a limited period only and should be fully made use of.