amnesty scheme under GST
CA Poonam Gandhi
April 13, 2023

Updated on April 19th, 2023

The roots for announcing the Amnesty Scheme 2023 were planted in the 49th GST Council Meeting which was held under the Chairpersonship of Smt. Nirmala Sitharaman on 18th February 2023.

Taking quick action to the same, the Central Board of Indirect Taxes and Customs came up with various notifications announcing different amnesties under GST. The same is briefly taken up and explained in the current article.

GST Amnesty scheme as recommended via 49th GST Council Meeting

Before going into the briefs of different notifications announcing amnesties under GST, let us go through the relevant recommendations of the 49th GST Council Meeting which are the basis of the amnesties

  • To provide an amnesty in the past cases, where-
    • GST registration has been cancelled due to non-filing of the GST returns; and
    • Application for revocation of cancellation of GST registration couldn’t be filed within the time limit prescribed under section 30 of the Central Goods and Services Tax Act, 2017;
  • To provide an amnesty in case of conditional deemed withdrawal of assessment order in the past cases, where –
    • Required concerned return couldn’t be filed within a period of 30 days of the assessment order; and
    • The same is filed along with due interest and late fee up to the specified date.
  • To provide an amnesty scheme relating to pending returns in Form GSTR-4; GSTR-9 and GSTR-10 either by way of conditional waiver or by way of reduction of late fee.

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Five notification issued by CBIC

CBIC notification in amnesty scheme

Acting upon the recommendations of the 49th GST Council Meeting, the Central Board of Indirect Taxes and Customs (CBIC) issued the following five notifications

  1. Notification no. 02/2023-Central Tax dated 31st March 2023 – Amnesty to GSTR-4 [i.e. Composition Scheme dealer] non-filers;
  2. Notification no. 03/2023-Central Tax dated 31st March 2023 – Amnesty for revocation of cancellation of registration;
  3. Notification no. 06/2023-Central Tax dated 31st March 2023 – Amnesty for deemed withdrawal of assessment order being issued under section 62;
  4. Notification no. 07/2023-Central Tax dated 31st March 2023 – Amnesty to GSTR-9 [i.e. Annual Return] non-filers; and
  5. Notification no. 08/2023-Central Tax dated 31st March 2023 – Amnesty to GSTR-10 [i.e. Final Return] non-filers.
Revocation of cancellation of registration

GST Amnesty scheme towards revocation of cancellation of registration

Vide notification no. 03/2023-Central Tax dated 31st March 2023, amnesty scheme with regard to revocation of cancellation of registration is announced. The same is explained hereunder –

Eligibility for availing GST Amnesty Scheme

The person satisfying the following conditions is eligible to avail the benefit of the GST Amnesty Scheme –

Condition 1 – The registration of the person has been cancelled under

  • Section 29(2)(b) of the Central Goods and Services Tax Act, 2017 i.e. registration is cancelled as composition scheme dealer failed to furnish a return for the Financial Year beyond 3 months from the due date; or
  • Section 29(2)(c) of the Central Goods and Services Tax Act, 2017 i.e. registration of a person other than the composition scheme dealer is cancelled as a person has failed to furnish a return for the continuous prescribed tax period.

Condition 2 – The registration is cancelled on or before 31st December 2022.

Condition 3 – Such a person has failed to apply for revocation of cancellation of registration within the time limit specified under section 30 of the Central Goods and Services Tax Act, 2017.

Amnesty available

As per the Amnesty available, an eligible person can apply for revocation of cancellation of registration by satisfying the below specified conditions.

Conditions to be satisfied

Condition 1 - Application for revocation of cancellation of registration is to be filed on or before 30th June 2023;

Condition 2 – Application for revocation should be filed only after furnishing all the due returns up to the effective date of cancellation of registration; and

Condition 3 – Application for revocation should be filed only after payment of a due amount of tax along with interest, penalty and late fee.

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Amnesty scheme towards deemed withdrawal

GST Amnesty scheme towards deemed withdrawal of assessment

Vide notification no. 06/2023-Central Tax dated 31st March 2023, GST amnesty scheme with regard to deemed withdrawal of assessment order being issued u/s 62. The same is explained hereunder

Eligibility for availing Amnesty

The person satisfying the following conditions is eligible to avail the benefit of the Amnesty Scheme –

Condition 1 – The registered person has failed to furnish a valid return within 30 days from the date of service of the assessment order issued under section 62(1) of the Central Goods and Services Tax Act, 2017; and

Condition 2 – The assessment order is issued on or before 28th February 2023.

Amnesty available

The assessment order issued under section 62(1) will be deemed to have been withdrawn if the conditions specified herein below are satisfied.

Conditions to be satisfied

Condition 1 – The registered person has furnished the valid return on or before 30th June 2023; and

Condition 2 – Applicable interest under section 50(1) of the Central Goods and Services Tax Act, 2017 and late fee under section 47 of the Central Goods and Services Tax Act, 2017 is duly paid along with the return.

Amnesties available to non-filers of GST returns

The Amnesty scheme in case of non-filers of GST returns is available only in the case of Form GSTR-4; Form GSTR-9 and Form GSTR-10. The same is simplified in the table below

Particulars

Amnesty Scheme for GSTR-4

Amnesty Scheme for GSTR-9

Amnesty Scheme for GSTR-10

Relevant Notification

02/2023-Central Tax

07/2023-Central Tax

08/2023-Central Tax

Period covered

Quarters from July 2017 to March 2019; and
Financial Year 2019-2020, 2020-2021 and 2021-2022.

Financial Year 2017-2018, 2018-2019, 2019-2020, 2020-2021 and 2021-2022

Entire period

Amnesty Available

Amnesty is available in the form of reduction in the late fees. Accordingly, late fees payable will be –

Amnesty is available in the form of reduction in the late fees. Accordingly, late fees payable will be Rs. 20,000 (i.e. Rs. 10,000 CGST + Rs. 10,000 SGST).

Amnesty is available in the form of reduction in the late fees. Accordingly, late fees payable will be Rs. 1,000 (i.e. Rs. 500 CGST + Rs. 500 SGST).

Particulars

Amount of late fees payable

Amount of central tax payable is ZERO (NIL)

NIL

Any other case

Rs. 500 (i.e. Rs. 250 CGST + Rs. 250 SGST)

Condition to be satisfied

The pending returns need to be furnished within the period 1st April 2023 to 30th June 2023

The pending returns need to be furnished within the period 1st April 2023 to 30th June 2023

The pending returns need to be furnished within the period 1st April 2023 to 30th June 2023

Synopsis of GST Amnesty Scheme 2023

The GST Amnesty Scheme 2023 is summarized hereunder

Particulars

GST Amnesty Scheme 2023


Revocation of cancellation of registration

Deemed withdrawal of assessment order u/s. 62

Non-filing of GSTR-4

Non-filing of GSTR-9

Non-filing of GSTR-10

Eligibility

Registration is cancelled under section 29(2)(b) or 29(2)(c) on or before 31st December 2022 and revocation application is not filed within the time limit.

Valid return within a period of 30 days from the date of assessment order u/s. 62 is not furnished and such an assessment order is issued on or before 28th February 2023.

Any of the return/ returns for quarters July, 2017 to March, 2019 or Financial Year 2019-2020 to 2021-2022 are not furnished.

Any of the return/ returns for the Financial Year 2017-2018 till 2021-2022 is not furnished.

Return is not furnished

Amnesty

Application of revocation of cancellation of registration can be filed up to 30th June 2023.

Assessment order will be deemed to have been withdrawn.

Reduction in late fees.

Reduction in late fees.

Reduction in late fees.

Conditions to be satisfied

All the pending returns along with pending dues are cleared.

Valid return is furnished on or before 30th June 2023 and application interest and late fees.

Pending returns to be furnished by 30th June 2023.

Pending returns to be furnished by 30th June 2023.

Pending returns to be furnished by 30th June 2023.


CA Poonam Gandhi

About the author

Poonam Gandhi is a Chartered Accountant and a Lawyer. She is a Professional Freelance Content Writer/ Editor and an Educator.

She masters in creating result-oriented as well as Search Engine Oriented Content. Currently, she is associated with some of the topmost leading sites of India.

She holds more than 3 years of experience in the content field. Before entering the content writing field, she possessed a wide practice experience of more than 9 years, specifically, in the field of Indirect Taxation.

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