GST Amnesty Scheme 2023 for Non-Filers

Government announces such amnesty schemes time to time for providing benefits to the taxpayers. Especially to those taxpayers, who have not filed returns in time or they have committed any defaults under GST Laws. It was first come into force in 2018. In which Government waived off the late fees on the returns period from July, 2017 to September, 2018. Secondly, it was notified on 01/06/2021 to provide benefit in COVID Period. This amnesty scheme covered the return period from July, 2017 to April, 2021.

Recently GST council at its 49th meeting on 18/02/2023, recommended new amnesty scheme for taxpayers who have not filed GSTR-4, GSTR-10 & GSTR-9 of the past financial years. Also, GST Council suggested providing relief to those taxpayers who have not filed revocation against cancellation of registration in time. GST Department has launched this scheme by issuing various notifications on 31/03/2023. The new GST Amnesty Scheme 2023 will commenced from 01/04/2023. The new GST Amnesty Scheme 2023 is as follows:

Amnesty to GSTR-10 Non-Filers

GST Department has issued notification no. 08/2023 dt. 31/03/2023 and provide relief to the tax payers who have not filed the GSTR-10 (The Final Return after surrender of GST Registration) within time limit. As per the notification, the tax payers can file the GSTR-10 from 01/04/2023 to 30/06/2023 by paying a maximum of Rs. 1000/- (Rs. 500/- each for CGST & SGST) as late fees. The department will waive off the amount of late fees which is in excess of Rs. 1000/-.

Amnesty to GSTR-9 Non-Filers

GST Department has issued notification no. 07/2023 dt. 31/03/2023 and provided relief to the tax payers who have not filed the GSTR-9 (The Annual Return) from the FY 2017-18 to 2021-22. As per the notification, the tax payers can file the GSTR-9 from 01/04/2023 to 30/06/2023 by paying a maximum of Rs. 20,000/- (Rs. 10,000/- each for CGST & SGST) as late fees. The department will waive off the amount of late fees which is in excess of Rs. 20,000/-.

Further the GST Department has notified new rates of late fees from the FY 2022-23 onwards, which are as follows:

Amnesty to GSTR-4 Non-Filers

GST Department has issued notification no. 02/2023 dt. 31/03/2023 and provided relief to the tax payers who have not filed the GSTR-4 (The Annual Return for Composition Tax Payers) for the quarters from July, 2017 to March, 2019 and for the FY from 2019-20 to 2021-22. As per the notification, the tax payers can file the GSTR-4 from 01/04/2023 to 30/06/2023 by paying a maximum of Rs. 500/- (Rs. 250/- each for CGST & SGST) as late fees. The department will waive off the amount of late fees which is in excess of Rs. 500/-.

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

GST Department has issued notification no. 03/2023 dt. 31/03/2023 and provided relief to the tax payers who have failed in filing Form REG-21 against the cancellation of GST Registration within time. As per the notification, The Registered Person, whose registration has been cancelled on or before 31/12/2022 and he has failed to apply for revocation within time shall follow the special procedure in respect of revocation of cancellation of such registration:

• May apply for revocation of cancellation of registration up to 30/06/2023
• The application of revocation shall be filed only after furnishing the returns along with payment of tax due up to the effective date of cancellation of registration.
• No further time extension shall be available for such cases.

Aadhaar Authentication

As per notification no. 04/2023 dt. 31/03/2023, where an applicant, other than a person notified under section 6(D) of section 25, opts authentication of Aadhar number shall undergo authentication of Aadhaar number.

• The date of submission of the application shall be the date of authentication of Aadhaar number, or 15 days from the submission of the application in Part B of Form REG-01 under sub-rule (4), whichever is earlier.
• If not then it shall be followed by biometric-based Aadhar authentication and taking photograph of the applicant where the applicant is an individual.
• Assessment Order: As per notification no. 06/2023 dt. 31/03/2023, where the registered person who have failed to furnish a valid return within a period of 30 days from the service of assessment order issued on or before 28/02/2023. As the class of registered persons, in respect of whom said assessment order shall be deemed to have been withdrawn, if such registered persons follow the special procedure as specified below:
• The registered person shall furnish the said return on or before 30/06/2023,
• The return shall be accompanied by payment of interest and late fees.

Extension of Limitation under Section 168A of CGST Act

As per notification no. 09/2023 dt. 31/03/2023, The Department extended the time limit for issuance of order u/s 73 of the Act for recovery of tax not paid or short paid or of ITC wrongly availed or utilized. The extended due dates are as follows:

The above mentioned amnesty scheme is active upto 30/06/2023 and defaulted registered person can avail benefits and remove their defaults by paying nominal fees. This amnesty scheme is a good decision to regularize the defaulted registered persons and it is well appreciated by the group of tax payers and professionals. Although there is no benefit or refund to those registered persons who have already regularized themselves by paying huge late fees before announcement of this scheme.

Although these schemes are beneficial to the registered person who have committed defaults mistakenly, but on the other hand these schemes are deliberately provoking others to wait for such schemes and not to pay late fees, as there is no benefit to those regular & honest registered person who have already removed their defaults by paying huge late fees.