GST Amnesty Scheme 2023

The working class of India, i.e. the ones working in the 9 to 5 jobs, have trouble doing their taxes. The reason can be attributed to the education sector. This is why most people panic whenever there is a new tax-related policy. The biggest example of this chaos was during the presentation of Budget 2023. Everyone starts surfing the Internet blindly to understand these new provisions. Recently the new GST Amnesty Scheme was introduced.

The government brings these new changes from time to time. These also have various benefits for the taxpayers. Hence, we should enlighten ourselves about this new scheme. If you also had some doubts about this scheme, you have reached the right place. Let us discuss the important points of the GST Amnesty Scheme 2023. 

Understanding Tax Amnesty

Firstly we need to understand – what is tax amnesty. Tax amnesty basically refers to the time period granted by the government to the people. During this period, taxpayers can disclose any irregularities and pay their previous tax returns. After successfully paying the defined amount in a limited time period, the government ‘forgives’ them. This forgiveness results in protection from any legal prosecutions whatsoever.  There are two types of amnesty – 

• Financial – Reduction of taxpayers’ declared/undeclared tax liabilities 
• Legal – Waiving of civil and criminal penalties

What is the GST Amnesty Scheme 2023? 

The government usually offers the GST Amnesty Scheme whenever taxpayers cannot pay their tax liabilities. These provisions help reduce non-compliance. The GST Amnesty Scheme first came into force in 2018. During the first scheme – 

• The Government waived the late fees on the returns period from Jul 2017-Sep 2018. 
• Secondly, to provide relief during Covid Period, it was notified on 01st June 2021. The amnesty covered the return period from Jul 2017-Apr 2021.

Recently, the government introduced the new GST Amnesty Scheme at the 49th meeting of the GST Council. Introduced on 18th Feb 2023, taxpayers can file their pending GST returns without hefty penalties. You must file your GST returns by complying with all rules and deadlines. 

The new amnesty scheme is for people who have not filed GSTR-4, GSTR-10 & GSTR-9 in the past financial years. Let us see this one by one.

Amnesty to GSTR-10 Non-Filers

The first form is GSTR-10. The key features of this form are –  

• Providing relief to those taxpayers who have not filed revocation against cancellation of registration in time.
• The new GST Amnesty Scheme 2023 commenced on April 1st 2023.
• Provide relief to those  who have not filed the GSTR-10 (The Final Return after surrendering GST Registration) within the time limit.
• The taxpayers can file the GSTR-10 from April 1st  2023 to 30th June 2023. 
• They have to pay a maximum of Rs. 1000 (Rs. 500 each for CGST and SGST) as late fees. 
• The department will waive the amount of late fees which is over Rs. 1000

Amnesty to GSTR-9 Non-Filers

This new notification was announced on 31st March 2023. It has these below-mentioned features – 

• Provided relief to the taxpayers who have not filed the GSTR-9 (The Annual Return) from the FY 2017-18 to 2021-22. 
• You can file the GSTR-9 from 1st April 2023 to 30th June 2023. 
• Pay a maximum of Rs. 20,000 (Rs. 10,000 each for CGST and SGST) as late fees
• The department will waive the amount of late fees which is more than Rs. 20,000

Amnesty to GSTR-4 Non-Filers 

On 31st March 2023, Amnesty to GSTR-4 was announced in notification no. 02/2023. It –

• Provided relief to the taxpayers who have not filed the GSTR-4 (The Annual Return for Composition Tax Payers). 
• It was for the quarters from July 2017 to March 2019 and for the FY from 2019-20 to 2021-22. As per the notification, the taxpayers can file the GSTR-4 from 1st April 2023 to 30 June 2023. 
• Taxpayers had to pay a maximum of Rs. 500 (Rs. 250 each for CGST & SGST) as late fees. The department will waive the amount of late fees which is in excess of Rs. 500 

Amnesty to REG-21 Application for Revocation of Cancellation of GST Registration 

The GST Department issued notification no. 03/2023 on 31st March 2023. It – 

• Provided relief to the taxpayers who failed to file Form REG-21 against the cancellation of GST Registration within the time. 
• Concerned the Registered Person, whose registration has been cancelled on or before 31st Dec 2022 and he has failed to apply for revocation within the time. 
• Must follow the special procedure regarding revocation of cancellation of such as registration.
• May apply for revocation or cancellation of registration up to 30th June 2023. 
• Application of revocation must be filed only after furnishing the returns with payment of tax due up to the effective date of cancellation of registration. No further time extension will be available for such cases.

Benefits and Challenges of this Scheme  

The new GST Amnesty Scheme offers a lot of benefits such as – 

• Relief from late fees
• Relief from penalties and legal consequences 
• Helps in reinstating compliance status and ensuring closure of GST liabilities

But various challenges can also arise will availing of this scheme. Therefore, it is important to –

• Review your records like closing stock and associated liabilities or credits, are accurately documented. 
• Seek professional assistance from financial experts. 
• Have all the required information with yourself.  
• Take some help from various online platforms 

Save the Date 

The Validity of the GST Amnesty Scheme 2023 is June 30, 2023. Hence, the benefits of the GST Amnesty Scheme can be availed only up to the above-mentioned date.

Frequently Asked Questions (FAQs)