GST Amnesty Scheme - 2023

The GST Amnesty Scheme has been introduced once again by the government to provide relief to taxpayers who missed filing GSTR for the previous tax periods. In this article, get complete details of the applicability, benefit, and working of this scheme with the latest updates. Also, learn about the late fee relief.

49th GST Council meeting

1. Amnesty scheme 1: For pending returns in GSTR-4, GSTR-9 and GSTR-10. This scheme comes with a conditional waiver/ reduction of late fees.
2. Amnesty scheme 2: To help taxpayers whose GST registration has been cancelled due to the non-filing of tax returns. Under this,taxpayers can file for the revocation of GST registration which couldn’t be filed earlier.
3. Amnesty scheme 3: Conditional deemed withdrawal of best judgment assessment orders in past cases. This amnesty is available for taxpayers who could not file the concerned return within 30 days of the assessment order; however, they filed it with interest and late fee up to a specified date. Also, this benefit is available irrespective of filing an appeal or whether the appeal has been decided.

Who Can Avail and its Benefits

Name of form/action	Who can avail	Amnesty benefits
GSTR-4 (quarterly/annual)	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	(1) Other than Nil return - Late fee fixed at max Rs. 500 (i.e. Rs.250 each for CGST and SGST Act) per return. (2) Nil return - No Late fee
GST REG-21: Application for revocation of cancellation of GST registration	Any taxpayer whose GST registration is cancelled by GST officer on or before 31st December 2022 for the following reasons- Can file REG-21 in extended time period - Failure to file returns for six months/two quarters continuously - Failure to conduct business for continuous period of six months from the date of registration And Such 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 fact that appeal was filed and rejected on grounds of not meeting the time limit of revocation.	Can file REG-21 in extended time period Condition: File all pending returns with taxes, late fee and interest, as applicable up to date of cancellation of GST registration.
Any pending GST returns potentially attracting Section 62 of the CGST Act	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 February 2023.	Deemed withdrawal of best judgement 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 fee and interest, as applicable.
GSTR-9 (annual return)	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.	Can file GSTR-9 at concessional late fee of maximum Rs.20,000. (i.e., 10,000 each under CGST and SGST Act). The late fee is waived off in excess of Rs.20,000 for delayed filing of GSTR-9 for years 2017-18 up to 2021-22.
GSTR-10 (Final return)	Taxpayers whose GST registration is cancelled within three months of the date of cancellation or date of order of cancellation, whichever is later	Can file GSTR-10 at a concessional late fee of maximum Rs.1,000. (i.e., 500 each under CGST and SGST Act). The late fee is waived off in excess of Rs.1,000 for delayed filing of GSTR-10.

Validity

The above mentioned amnesty scheme is active upto 30/06/2023 and defaulted registered person can avail benefits and remove their defaults by paying nominal fees. This amnesty scheme is a good decision to regularize the defaulted registered persons and it is well appreciated by the group of tax payers and professionals. Although there is no benefit or refund to those registered persons who have already regularized themselves by paying huge late fees before announcement of this scheme.

Example

Mr. X is a composition taxpayer who didn’t filed the GSTR 4 for the quarter April 2022 to June 2022 on the assumption that it was not necessary to file the return has there were no sales in that quarter.

As per the section 47 of CGST Act, 2017 the late for not filing the GSTR 4 is 50 per day is charged up to a maximum of Rs.10,000 So, if GSTR 4 is filed in the month June 2023 and if GST Amnesty Scheme was not introduced the late fee would be 10000 as mentioned in the above section as it was nil return.

As GST Amnesty Scheme has been introduced the late fee of Rs.10000 that is mentioned above will waived off and there will be no late fee as such for late filing of GSTR 4 if it is filed on or before 30 June 2023 under GST Amnesty Scheme.

Disclaimer:

“Information contained herein is for informational purposes only and should not be used in deciding any particular case. The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Though utmost efforts have been made to provide authentic information, it is suggested that to have better understanding and obtaining professional advice after thorough examination of particular situation.”

Prepared by, Madan S Ganji
(Article assistant),B C Shetty & Co.

Prepared On:
15/06/23