The government has implemented various amnesty schemes at different times to offer benefits to taxpayers, particularly for those who have failed to file returns on time or have committed defaults under Central and State Goods and Services Tax Acts.
Missing out compliance due dates are the worst nightmares of every practitioner. The difficulties in implementation of the relatively new Goods and Services Tax regime are compensated by relaxations of such compliance regulations, extension of due dates and most importantly, amnesty schemes for one time settlement of unpaid dues and unfiled returns.
The Goods and Services Tax Council, in the 49th Meeting had made the following recommendations: –
Extension of time limit for application for revocation of cancellation of registration and one time amnesty for past cases: The Council has recommended amendment in section 30 of CGST Act, 2017 and rule 23 of CGST Rules, 2017 so as to provide that –
the time limit for making an application for revocation of cancellation of registration be increased from 30 days to 90 days; where the registered person fails to apply for such revocation within 90 days, the said time period may be extended by the Commissioner or an officer authorized by him in this behalf for a further period not exceeding 180 days.
The Council had also recommended that an amnesty may be provided in the past cases, where registration has been canceled on account of non-filing of the returns, but application for revocation of cancellation of registration could not be filed within the time specified in section 30 of CGST Act, by allowing such persons to file such application for revocation by a specified date, subject to certain conditions.
Amendment to Section 62 of CGST Act, 2017 to extend timelines under sub-section (2) thereof and one time amnesty for past cases: As per sub-section (2) of section 62 of CGST Act, 2017, the best judgment assessment order issued under sub-section (1) of the said section is deemed to be withdrawn if the relevant return is filed within 30 days of service of the said assessment order.
In addition, the Council had recommended to amend section 62 so as to increase the time period for filing of return for enabling deemed withdrawal of such best judgment assessment order, from the present 30 days to 60 days, extendable by another 60 days, subject to certain conditions.
Further, the GST Council had also advocated for Amnesty in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10: To provide relief to a large number of taxpayers, the Council recommended amnesty schemes in respect of pending returns in FORM GSTR-4, FORM GSTR-9 and FORM GSTR-10 by way of conditional waiver/ reduction of late fee.
The Council had also recommended to provide an amnesty scheme for conditional deemed withdrawal of assessment orders in past cases where the concerned return could not be filed within 30 days of the assessment order but has been filed along with due interest and late fee upto a specified date, irrespective of whether appeal has been filed or not against the assessment order, or whether the said appeal has been decided or not.
The GST Amnesty Scheme, in the year 2023 includes the following relaxations for one time settlement of Goods and Services Tax compliance defaults:
Amnesty to GSTR-10 Non-Filers: Taxpayers who haven’t filed GSTR-10 (The Final Return after surrender of GST Registration) within the time limit can file it between 01/04/2023 and 30/06/2023. A maximum late fee of Rs. 1000/- (Rs. 500/- each for CGST & SGST) is applicable, with any excess late fees waived.
Amnesty to GSTR-9 Non-Filers: Taxpayers who haven’t filed GSTR-9 (The Annual Return) for the fiscal years 2017-18 to 2021-22 can file it between 01/04/2023 and 30/06/2023. A maximum late fee of Rs. 20,000/- (Rs. 10,000/- each for CGST & SGST) is applicable, with any excess late fees waived.
Amnesty to GSTR-4 Non-Filers: Taxpayers who haven’t filed GSTR-4 (The Annual Return for Composition Tax Payers) for the quarters between July 2017 and March 2019, and for the fiscal years 2019-20 to 2021-22, can file it between 01/04/2023 and 30/06/2023. A maximum late fee of Rs. 500/- (Rs. 250/- each for CGST & SGST) is applicable, with any excess late fees waived.
Amnesty to REG-21 Application for Revocation of Cancellation of GST Registration: Taxpayers whose registration has been canceled on or before 31/12/2022 and failed to apply for revocation on time can follow a special procedure for revocation. The application must be filed by 30/06/2023 after furnishing the returns along with interest and penalties, if any.
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