GSTR-9 Non-Filing Amnesty Scheme: All You Need to Know

The Central Board of Indirect Taxes and Customs (CBIC) has finally announced the GSTR-9 amnesty scheme, bringing relief to non-filers of the Goods and Services Tax (GST) annual returns. The Central Tax notification 07/2023, was issued on 31st March 2023, with significant benefits for those who missed previous deadlines for filing their annual returns in Form GSTR-9.

One of the major reasons for businesses delaying the filing of their GSTR-9 was the high late fee charges, which were often in lakhs of rupees.

Under the amnesty scheme, businesses that missed the deadline for filing their GSTR-9 returns can do so by paying a concessional late fee. The notification allows for a waiver of late fees calculated under the law, by an amount exceeding Rs.10,000 per return, per Act.

For instance, if a business wants to file GSTR-9 for a past financial year, such as 2018-19, it can do so by paying a late fee of only up to Rs.20,000. The business does not need to pay the remaining late fees if the computed late fee by the Central Goods and Services Tax provision of Section 47 exceeds the maximum cap.

The benefits under the GST amnesty scheme are available until 30th June 2023, and it is advisable to file the pending GSTR-9 returns during this time to avoid severe consequences.

It is essential to note that GSTR-9 must be filed, even if it is a nil-return and cannot be revised once filed. Therefore, taxpayers must ensure the accuracy of the details reported in the missed GSTR-9 returns to avoid any potential notices from the department.

Furthermore, the notification has introduced a new late fee for different categories of taxpayers for GSTR-9 returns from FY 2022-23. The late fee is dependent on the slab of annual aggregate turnover under which the business falls, with the maximum late fee restricted to 0.04% or 0.50% of the turnover in the state/Union Territory.

To sum up, the GSTR-9 amnesty scheme provides an opportunity for taxpayers to file their returns with full and accurate disclosure of GST details, while avoiding litigation and reducing costs. It is recommended that taxpayers take advantage of the scheme and file their pending GSTR-9 returns to avoid higher penalties.

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