Seeking Guidance on GST Penalties and Waiver Options

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Jayakumar S

3 Points Joined October 2024

Hello Experts,

I hope you all are doing well. I am reaching out for advice regarding my GST situation. My GST registration as a proprietor was canceled suo motu due to non-filing of returns. Currently, I am a partner in a new company, and while applying for a new GST registration, I received a notice requiring me to file all returns from November 2017 to November 2019, along with the Final Return (GSTR 10).

During that period, I did not carry out any business activities. When I attempted to file a nil return, I discovered a penalty of ₹10,000 for November 2017, with a similar penalty likely for each subsequent month. This means I could potentially face penalties totaling around ₹2.4 lakhs for the two-year period.

Given these circumstances, I would like to ask:

Are there any possibilities for a waiver of these penalties?
Will the upcoming GST amnesty scheme starting from November 1 help in this situation?

I appreciate any insights or advice you can provide on how to navigate this issue.

Thank you!

Best regards,

Jayakumar

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9447 Points Joined December 2011

The GST Amnesty Scheme can offer relief to taxpayers who missed filing GSTR-3B for previous tax periods ¹. The scheme provides a conditional waiver or reduction of late fees for pending returns ¹. However, the scope of the scheme is limited, and it does not provide a full waiver of penalties ¹. To navigate this issue, consider the following steps: - *Review the scheme's eligibility criteria*: Ensure you meet the conditions for the amnesty scheme, including the type of returns and tax periods covered ¹. - *File pending returns*: Submit all pending GSTR-3B returns to avoid cancellation of GST registration ¹. - *Pay taxes and interest*: Pay any due taxes and interest to avoid additional penalties ¹. - *Seek professional advice*: Consult a tax professional to ensure you follow the correct procedures and maximize the benefits of the amnesty scheme ¹. Keep in mind that the amnesty scheme has specific timeframes and conditions, so it's essential to act promptly and carefully to navigate this situation. The upcoming GST amnesty scheme starting from November 1 may provide additional relief, but it's crucial to review the details and eligibility criteria once it's announced ¹.

Jayakumar S

3 Points Joined October 2024

Amnesty scheme providing waiver of interest and penalty in non-fraud cases for FY 2017-18 to 2019-20 to be notified w.e.f. 1 November 2024. Further, the tax demand as per the notice or order is required to be paid on or before 31 March 2025 to avail the benefit. -

my non-filing period falls under the above mentioned period. so i want to know that will it cover Suo moto case like me?