The Goods and Services Tax (GST) Amnesty scheme, slated to conclude on August 31, was extended by the Central Board of Indirect Taxes and Customs (CBIC) from the original deadline of June 30. This extension was granted to provide relief to taxpayers who had yet to submit their returns. The scheme offers businesses an opportunity to comply with GST return filing even if they’ve missed deadlines. With the impending closure of the scheme, let’s delve into its purpose and advantages.
GST Amnesty Scheme By Government Explained With Benefits
The GST Amnesty scheme, introduced by the Central Government, aims to facilitate business adherence to the country’s GST regulations. The process of filing GST returns must be sequential, and failure to meet deadlines can result in penalties. In such cases, the GST Amnesty scheme serves as a means for taxpayers to file their returns without facing hefty fines. Additionally, the plan assists businesses whose registration has been canceled due to non-filing of returns. Under this scheme, taxpayers can also apply for the reinstatement of their canceled registration.
Eligibility for revocation of cancellation under the amnesty plan includes business entities whose registration was revoked on or before December 31, 2022. Those seeking to reverse their canceled registration must submit all pending returns up to the effective revocation date, along with any outstanding taxes, penalties, and liabilities.
So, how does one benefit from the GST Amnesty scheme? Taxpayers cannot file returns for a specific period without addressing prior ones, and hefty penalties are imposed for such lapses. The scheme enables taxpayers to submit pending returns without incurring substantial fines, aiding compliance with the country’s indirect taxation laws. It also provides an avenue for businesses to appeal against registration cancellation if they haven’t submitted GST returns for three consecutive quarters.
One notable aspect of the scheme is the reduction of late fees. Late filing fees for GSTR-4 returns spanning FYs 2019-20 to 2021-22 and for quarters from July 2017 to March 2019 have been set at nil for nil returns and Rs 500 for non-nil returns. The maximum late fee is capped at Rs 20,000 (Rs 10,000 SGCT + Rs 10,000 CGST) for any fiscal year from 2017-2021-22 when filing annual returns under GSTR-9. Late filing of annual returns under GSTR-10 incurs a reduced fee of Rs 1,000 if submitted on or before the deadline.
In conclusion, the GST Amnesty scheme is a measure to aid businesses in adhering to GST laws. By providing a window for filing pending returns without severe penalties, it supports compliance with indirect taxation regulations. This initiative also allows entities to challenge registration cancellations stemming from non-compliance, offering an opportunity to rectify their status. The reduction in late fees further incentivizes timely filing and fosters smoother adherence to GST procedures.