The Goods and Services Tax (GST) amnesty scheme has been a much-discussed topic among taxpayers since its inception. Designed to offer relief to non-compliant taxpayers, the scheme provides an opportunity to rectify past errors and become fully compliant with the GST Act. Recently, the GST Council has announced a significant extension to the deadline for availing the benefits of this scheme, granting taxpayers more time to settle their dues and adhere to the necessary regulations.
Original Deadline and the Extension
Initially set to expire on June 30, 2023, the GST amnesty scheme has now been extended by the GST Council, giving eligible taxpayers until August 31, 2023, to avail of its benefits. This extension aims to provide a lifeline to taxpayers who were unable to meet the original deadline, enabling them to complete pending compliances and rectify any discrepancies.To avail of the benefits, eligible taxpayers must clear all outstanding taxes, interest, and penalties by August 31, 2023.
Covered Schemes: The GST amnesty scheme aims to simplify the compliance process for taxpayers. By encouraging them to come forward and rectify past errors without facing harsh penalties, the scheme promotes a more straightforward and streamlined approach to compliance. This helps eligible taxpayers in adhering to the GST regulations with greater confidence.The extension of the GST amnesty scheme covers several crucial schemes, including:
GSTR-4 Filing
This scheme is specifically for composition scheme taxpayers who need to file their quarterly returns under the GST Act.
Eligibility
- Applicable to taxpayers registered under the composition scheme.
- The scheme covers GSTR-4 returns for quarters from July 2017 to March 2019 or Financial years from 2019-20 to 2021-22.
- The due date for filing was missed, but the return is furnished between April 1, 2023, and August 31, 2023.
Relief Measures
- Late fee under Section 47 of the GST Act exceeding two hundred and fifty rupees is waived.
- Full waiver of late fee if the total central tax payable in the return is nil.
Revocation Application
The Revocation Application scheme allows taxpayers to apply for the revocation of their cancelled GST registration within the extended period. It applies to GST registrations cancelled on or before December 31, 2022, under Clause (b) or Clause (c) of Sub-section (2) of Section 29 of the GST Act. This scheme offers an opportunity for eligible taxpayers to rectify non-compliance issues related to non-filing of returns and regain their GST registration status
Eligibility
- Taxpayers whose GST registration was cancelled on or before December 31, 2022, onthe ground of non filing of returns under Clause (b) or Clause (c) of Sub-section (2) of Section 29 are eligible to apply for revocation.
- Taxpayers who failed to apply for revocation within the specified time period mentioned in Section 30 of the GST Act can also benefit from this scheme.
- Even those whose appeals against cancellation or rejection of revocation applications were rejected due to non-adherence to time limits are eligible to apply for revocation under this scheme.
Relief Measures
- Eligible taxpayers can apply for revocation of their cancelled GST registration within the extended period.
- The scheme offers an opportunity to rectify non-compliance issues related to non-filing of returns and reinstate the GST registration status.
- Taxpayers can regain their status as compliant GST entities and continue their business operations legally.
Withdrawal of Assessment Order under Section 62
The withdrawal of the assessment order under Section 62 of the GST Act is a significant provision offered under the GST amnesty scheme. This provision allows eligible taxpayers to rectify any assessment orders that may have been issued against them by the tax authorities.The scheme is available to taxpayers who have been issued assessment orders on or before February 28, 2023.
Eligibility
- To be eligible for the amnesty scheme, the taxpayer must meet the following conditions:
- The taxpayer must have filed a valid return under section 39 of the CGST Act for the period covered by the assessment order.
- The taxpayer must have paid the tax and interest due in full.
- The taxpayer must have not filed an appeal against the assessment order.
- The taxpayer must not have been prosecuted for non-compliance with the GST laws.
- If a taxpayer meets all of the above conditions, they can file an application for withdrawal of the assessment order under the amnesty scheme.
Relief Measures
- By withdrawing the assessment order, taxpayers can avoid the burden of paying additional tax liabilities, interest, and penalties
- Opportunity to rectify any errors or discrepancies that may have led to the issuance of the assessment order.
- By availing of the withdrawal option, taxpayers can avoid legal proceedings resulting from the assessment order, saving time and resources for both parties.
GSTR-9 Annual Return Filing
Regular taxpayers must file their annual return using GSTR-9, and this scheme allows eligible taxpayers to submit their pending returns.
Eligibility
- The scheme is applicable to taxpayers who have pending GSTR-9 returns for the financial years 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22.
- Taxpayers must file their pending GSTR-9 returns within the specified period of the scheme, which is from April 1, 2023, to June 30, 2023.
Relief Measures
- Waiver of Late Fees and Penalties: Taxpayers availing the scheme can file their pending GSTR-9 returns without incurring any late fees or penalties.
- Opportunity for Compliance: The scheme provides taxpayers with an opportunity to rectify their non-compliance by filing their pending returns within the specified financial years.
Taxpayers availing the scheme won’t be eligible for refunds or input tax credit for the non-filing period. Interest on outstanding tax liability still applies. Careful consideration is essential before opting for the scheme.
GSTR-10 Filing
The GSTR-10 Filing scheme provides relief to taxpayers who need to file a final return after the cancellation of their GST registration but fail to furnish the final return in FORM GSTR-10 by the due date. Under this GST amnesty scheme, eligible registered persons can benefit from a complete waiver of late fees exceeding five hundred rupees. The aim is to encourage timely submission of the final return, FORM GSTR-10, and ease the financial burden on taxpayers who may have missed the initial deadline.
Eligibility
- Taxpayers who need to file a final return in FORM GSTR-10 after the cancellation of their GST registration are eligible under this scheme.
- The scheme covers taxpayers who fail to furnish the final return by the due date.
Relief Measures
- The GST amnesty scheme offers eligible registered persons a waiver of late fees exceeding ₹1,000 per return (₹500 under CGST and ₹500 under SGST) for GSTR-10 filing.
- The waiver aims to encourage taxpayers to submit their final returns, FORM GSTR-10, in a timely manner and comply with GST regulations.
- By availing of the waiver, taxpayers can reduce their financial burden and avoid penalties for delayed filing of the final return.
The extension of the GST amnesty scheme until August 31, 2023, comes as a sigh of relief for eligible taxpayers who were facing challenges in meeting the initial deadline. By allowing more time for compliance and providing an opportunity to rectify past errors, the scheme encourages taxpayers to come forward and fulfill their GST obligations. If you are eligible for the amnesty scheme, make the most of this extension by filing your pending returns and be compliant. Don’t miss this chance to rectify past errors and maintain compliance with the GST Act. Consult SetIndiaBiz today and ensure that you file your pending returns and necessary steps are taken within the extended period. Let the experts handle your compliance matters while you focus on your business growth and success.