GST AMNESTY SCHEME
The GST Amnesty Scheme is a scheme introduced by the government to provide relief to taxpayers who have not filed their GST returns on time. It allows them to file their pending returns with reduced or waived late fees and interest. The government has notified amnesty scheme effective from 01.04.2023 for small businesses, persons who have not filers the final returns, and taxpayers whose GST registration had been cancelled. The apex body has made amendments to the Central GST Act, specifying that businesses whose registration have been cancelled on or before 31st December 2022, and who have failed to apply for revocation of cancellation within the specified period can do so by 30th June 2023.
Highlights:
1) A maximum late fee of Rs 20,000 can be applied to GST returns filed from 2017–18 to 2021–22. For this, all previous tax returns must be filed by June 30, 2023. After that, the entire penalty is due upon filing the return.
2) For registered persons who fail to submit the final return in Form GSTR-10 by the deadline but do so by June 30th, CBIC has set a maximum on the late fee at Rs 1,000. GSTR-10 is a final return that needs to be filed by taxpayers who have decided to cancel their GST registration.
3) For FY 2022–23 and thereafter, the CBIC has also rationalized the late charge for delayed filing of annual returns in (Form GSTR–9) for small enterprises with annual turnover up to 20 cr.
4) The maximum late fee would be 0.04 percent of the person’s total revenue, or Rs 50 per day, for those with an aggregate turnover of up to Rs 5 crore in the relevant financial year.
5) A late charge of Rs 100 per day, up to a maximum of an amount computed at 0.04 percent of his revenue, would be due from registered persons with an aggregate turnover of between Rs 5 and Rs 20 crore in the relevant fiscal year.
6) Late fees for filing old returns have also been waived for composition taxpayers. Composite taxpayers can now file all returns from July 2017 to March 2022 with a late fee of only Rs 500. The entire late fee has been waived if there is no tax liability.
7) This scheme is only valid till 30th June, 2023.
The GST Amnesty Scheme is a one-time opportunity for taxpayers to clear their dues and avoid any legal action or penalty. It also helps the government to increase its revenue collection and compliance level.
