After a gap of more than six months, the 43rd GST council meeting was held on 28th May 2021. The meeting was conducted, via video conferencing, under the Chairmanship of the Finance Minister Smt. Nirmala Sitharaman.
One of the major outcomes of the meeting was the announcement of the ‘Amnesty Scheme’ for late filing of pending GST returns. The Amnesty Scheme under GST is likely to benefit small as well as medium-sized taxpayers. The scheme will also enable the clearance of the backlog of pending GST returns.
The present article briefly explains the Amnesty Scheme 2021 under GST along with some of the illustrations and FAQs.
Amnesty Scheme and meaning thereof
The word ‘Amnesty’ is derived from the Greek word ‘Amnestia’. The word ‘Amnestia’ means forgetfulness.
Linking up the meaning, in a legal term, ‘Amnesty’ means reduction or waiver of any legal or procedural compliances arising on account of any offence/ non-compliance for a certain specific class of persons.
Gist of relief available under GST Amnesty Scheme 2021
As stated above, GST Amnesty Scheme 2021 is recently announced vide the GST council meeting. Interestingly, the amnesty scheme simply reduces the maximum amount of late fee payable due to non-filing of return in Form GSTR-3B.
Normal late fees provisions applicable to late filing of return in Form GSTR-3B
Before understanding the reliefs in details allowed under the Amnesty Scheme, it is important to understand the normal late fees payable for non-furnishing/ late furnishing of return in Form GSTR-3B filing. Accordingly, the late fees payable is-
Particulars | Late fee payable under normal circumstances |
|---|---|
Taxpayer having NIL tax liability during the relevant tax period | INR 20 per day per return (i.e., INR 10 under CGST + INR 10 under SGST) |
Any other taxpayer | INR 50 per day per return (i.e., INR 25 under CGST + INR 25 under SGST). |
Understanding reliefs available under Amnesty Scheme-
Get Free Bonus Report: Claim 100% ITC for your business
Let us understand the applicability; reliefs and condition of the Amnesty Scheme-
Amnesty Scheme Applicability
The Amnesty Scheme is applicable to all the taxpayers who have still not furnished the GST return in Form GSTR-3B for all or any of the tax period from July 2017 to April 2021.
Reliefs available under the Amnesty Scheme
Particulars | Late fee payable under Amnesty Scheme |
|---|---|
Taxpayer having NIL tax liability during the tax period July 2017 to April 2021 | The maximum late fee payable is INR 500 per return (i.e., INR 250 under CGST + INR 250 under SGST). |
Any other taxpayer | The maximum late fee payable is INR 500 per return (i.e., INR 250 under CGST + INR 250 under SGST). |
Condition to be satisfied to avail the benefit of the Amnesty Scheme
The above relief in late fee payable is available only if the taxpayer furnishes the pending GST returns in Form GSTR-3B within the period 1st June 2021 to 31st August 2021.
In nut-shell, the Amnesty Scheme simply reduces the maximum amount of late fees payable for non-furnishing/ late furnishing of Form GSTR-3B from INR 5,000 to INR 500 or INR 1,000, as the case may be.
Notably, the relevant proviso giving effect to the recommendation of GST council with regard to Amnesty Scheme is inserted vide Notification No. 19/2021- Central Tax dated 1st June 2021.
Examples explaining the Amnesty Scheme under GST-
Mr A took GST registration in January 2020. Mr A, however, didn’t undertake any transactions and accordingly didn’t filed any GST returns.
Under the GST Amnesty Scheme, Mr A can file NIL GST return in Form GSTR-3B for the period January 2020 to April 2021 with payment of a reduced late fee of INR 500 per return. However, Mr A will have to file all the pending return within the period starting from 1st June 2021 to 31st August 2021.
Mr B having GST transactions have failed to furnish GST returns in Form GSTR-3B for the period January 2021 to April 2021.
Since Mr B is having tax liability, he can file the pending returns by paying a reduced late fee of INR 1,000 per return under the GST Amnesty Scheme. The pending returns need to be filed from 1st June 2021 to 31st August 2021.
Mr C has obtained GST registration, however, is engaged in outward supplying of goods/ services having NIL rate of GST. Mr C has not furnished a GST return in Form GSTR-3B for the period April 2019 to April 2021.
Accordingly, under Amnesty Scheme, Mr C can file all the pending GST return in Form GSTR-3B by paying a reduced late fee of INR 500 per return. All the returns need to be filed from 1st June 2021 to 31st August 2021.
FAQ relating to Amnesty Scheme under GST-
Get Free Bonus Report: Claim 100% ITC for your business
Every registered taxable person who has failed to furnish return/ returns in Form GSTR-3B during the tax period July 2017 to April 2021.
The tax period from July 2017 to April 2021 is covered under the Amnesty Scheme.
Amnesty scheme 2021 offers a reduction of the maximum amount of late fee payable towards non-filing of GST returns in Form GSTR-3B during the period July 2017 to April 2021.
In order to avail the benefit of late fee reduction under the Amnesty Scheme, the taxable person is mandatorily required to furnish all the pending returns in Form GSTR-3B within the period 1st June 2021 to 31st August 2021.
As per the Amnesty Scheme, in the case of NIL tax liability, the maximum late fees payable would be INR 500 per return. However, under any other case, the maximum late fees payable would be INR 1000 per return.
File your GST returns
in minutes, not hours!
Get Live Demo and experience the simplicity by yourself.