GST Amnesty Scheme 2024 : Last Date, Eligibility

Since the implementation of the Goods and Services Tax (GST) in July 2017 there has been a significant degree of noncompliance owing to uncertainty in the GST laws, lack of awareness, frequent modifications and so on. The Special Amnesty Scheme was established to compensate for the delay in submitting the GST Appeal. It will be in place until 31 January 2024. According to the Ministry of Finance, taxpayers who missed the appeal deadline now have a golden opportunity. You get every necessary information regarding this scheme.

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GST Amnesty Scheme

The Central Board of Indirect Taxes and Customs (CBIC) has proposed a special amnesty plan for taxpayers who have concerns with goods and services taxes (GST). Since July 2017 when the Goods and Services Tax (GST) was imposed, there has been a significant degree of noncompliance owing to uncertainty in the GST laws, a lack of expertise, continual modifications and so on. The Special Amnesty Scheme was implemented to compensate for the delay in submitting the GST Appeal. It will stay in place until 31 January 2024. According to the Ministry of Finance, taxpayers who may have missed the appeal deadline have a fantastic opportunity.

CBIC introduced the GST Amnesty Scheme for the second time with a notification dated 1 June 2021. It applies to all outstanding GSTR-3B returns for prior tax periods between July 2017 and April 2021. At its 49th meeting in February 2023, the GST Council considered implementing a GST amnesty plan for taxpayers who have failed to file GSTR-4, GSTR-10 and GSTR-9 for previous fiscal years. The Council also proposed extending assistance to people whose GST registrations were terminated by giving them extra time to renounce them.

What Is GST?

The Goods and Services Tax (GST) was one of the most significant tax changes in India. Even seven years after its inception the GST legislation continues to evolve with periodic legislative and procedural amendments with the GST Council resolving concerns as they arise. Lack of clarity during the first period led to a number of letters being sent to taxpayers for tax demands, either for procedural violations or owing to disputes in interpretation of regulations.

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All About GST Amnesty Scheme

Notification on number	Name of form/action	Who can avail	Amnesty benefits	Validity to avail benefit
02/2023	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	File between 1st April 2023-30th June 2023
03/2023	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- – 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.	File on or before 30th June 2023
06/2023	Any pending GST returns potentially attracting Section 62 of the CGST Act	Any taxpayer who defaults 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 judgment 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.	File on or before 30th June 2023
07/2023	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.	File between 1st April 2023-30th June 2023
08/2023	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.	File between 1st April 2023-30th June 2023

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Benefits Of GST Amnesty Scheme

Taxpayers cannot file the GSTR-3B for a certain tax period unless they have already filed the prior ones. Furthermore, assume that the taxpayer has not submitted GSTR-3B for six consecutive tax periods or three consecutive quarters. In this instance, they risk having their GST registration terminated.

It can have an influence on their business since clients or GST registered customers may refuse to work with you or terminate contracts, requiring GSTR-3B considerable compliance for the company’s smooth operation. Taxpayers would gain from this relief since they will not have to pay high late costs, which would normally deter them from filing any outstanding GSTR-3B returns. Furthermore, it assists taxpayers in reestablishing their businesses after being severely hampered by lockdowns and poor economic conditions caused by the pandemic.

Who Is Eligible To Appeal Against A GST Tax Demand Order

• Individuals who failed to file an appeal against the GST demand order issued by the GST competent officer before 31 March 2023.
• If a prior appeal against the GST demand order was denied because it was filed beyond the deadline.

What Is The Late Fee Reduction Under The GST Amnesty Scheme 2021?

Taxpayers will receive a reduction on the late charge under the GST Amnesty Scheme. The maximum late charge for GSTR-3B with any tax liabilities other than a nil GSTR-3B filing is Rs.1,000 per return (Rs.500 under CGST and Rs.500 under SGST). The maximum late charge due for a zero GSTR-3B is Rs.500 per return (i.e. Rs.250 under CGST and SGST). In other words, the late charge for such a return will be the smaller of the two sums shown below. The total late costs determined under the Act for each day of delay, as well as the maximum late fee, are shown below.

According to the Act, a late charge for GSTR-3B with tax due would have been Rs. 8,150 for 163 days of delay, calculated at Rs. 50 per day of delay. However, the maximum late charge under the plan is Rs.1,000 for GSTR-3B returns due in January 2021. As a result, XYZ & Co is required to pay a Rs.1,000 late charge for filing such a return as well as the related tax liability and interest under the Act.

Solutions For The Issues

Taxpayers must be given the full benefit of the plan by investigating these factors. The government should broaden the scheme’s scope to encompass GSTR-1, GSTR-9 and GSTR-10 as well as provide ITC for prior periods when the time restriction has elapsed. Most importantly receivers of such ITCs must be given the chance to modify their returns.

As a result, the government must take appropriate action to address these inconsistencies and close the legal gap as soon as possible. Now that you understand everything about the GST Amnesty Scheme, it’s time to file 100% accurate GST returns using Clear GST solution to avoid the inconveniences of missing deadlines while maintaining data accuracy. You no longer have to worry about calculating tax and late fees because it is done for you automatically. If you need to file a nil return, Clear GST software will do the job in 30 seconds.

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