GST Amnesty scheme: What is it? How can you benefit from it?

The Goods and Services Tax Amnesty scheme is set to end on August 31. The Central Board of Indirect Taxes and Customs (CBIC) had extended the deadline for GSTR 4, GSTR-9, and GSTR-10 non-filers to August 31 from June 30. The last date was postponed to give relief to taxpayers who have not yet filed their returns. The GST Amnesty scheme provides business entities a chance to comply with the Goods and Services Tax return filing if they have missed any deadline. With the last date of the plan fast approaching, take a look at what the GST Amnesty scheme is about and what its benefits are.

What is the GST Amnesty scheme?

The GST Amnesty scheme was introduced by the Centre to help businesses comply with the Goods and Services Tax laws in the country. Every entity that needs to file its GST returns must conduct the process in a sequential manner. If the taxpayer misses the last date, they may have to pay penalties for not filing the returns. In such a situation, the GST Amnesty scheme helps taxpayers file their returns without hefty penalties. The plan also aids businesses whose registration stands cancelled for non-filing of returns. Under the GST Amnesty scheme, taxpayers can file for the revocation of their cancellation as well.

Business entities whose registration was cancelled before or on December 31, 2022, are eligible for revocation of cancellation under the amnesty plan. Taxpayers who apply for reversal of their cancelled registration need to submit all returns due until the effective date of revocation as well as any pending taxes, penalties and liabilities.

How can one benefit from the GST Amnesty scheme?

Taxpayers cannot file the GST return for a particular period without submitting the previous ones. A heavy penalty will also be levied on them for missing their filings. The GST Amnesty scheme allows taxpayers to file their pending returns without incurring a hefty fine. It will help them in complying with the indirect taxation laws of the country.

It also aids business entities to appeal against the cancellation of their registration if they have not submitted the GST returns for three consecutive quarters.

Amnesty Scheme under GST pic.twitter.com/DwovQX9zkM

— CBIC (@cbic_india) June 13, 2023

Late fee reduction under the GST Amnesty scheme:

The late fee for filing GSTR-4 returns for the FYs 2019-20 to 2021-22 and for the quarters from July 2017 to March 2019 has been reduced to nil for nil returns and Rs 500 for other than nil returns.

The maximum late fee has been pegged at Rs 20,000 (Rs 10,000 SCGT + Rs 10,000 CGST) for any FY from 2017-2021-22 for filing of annual return under GSTR-9.
Late filing of annual returns under GSTR-10 has been reduced to Rs 1,000 if filed on or before the last date.