All About New GST Amnesty Scheme w.e.f. 01-04-2023

Introduction of The New GST Amnesty Scheme

The finance ministry has found that many taxpayers are not filing their GST returns within the prescribed time frame. To stop this continuous activity, the GST Council held a 49th GST Council Meeting on 18th Feb 2023. It presented some essential notifications on the 31st of March 2023, introducing a new GST Amnesty Scheme for taxpayers. This new GST Amnesty scheme is an effort to end this continuous loophole of avoiding taxes by the taxpayers and provide them a chance to be compliant with their filings.

This new Amnesty scheme has various provisions for Aadhar authentication, Composition taxpayers, a late fee for GSTR-9 & GSTR-10, revocation of cancelled registrations, etc. So, let’s put some light on the highlights of this new GST Amnesty scheme w.e.f. 01/04/2023.

Highlights of the New GST Amnesty Scheme

• The new GST amnesty scheme is introduced for those taxpayers who failed to file their returns by the prescribed deadline.
•  Under the new amnesty scheme, composition taxpayers who failed to file their GSTR-4 returns between July 2017 and March 2022 may do so between April 1 and June 30, 2023, with a late cost of Rs. 500 per year.
• The taxpayers who faced a failure or whose registrations were cancelled on or before 31st December 2023 & and failed to apply for the revocation of registration cancellation can apply for revocation of cancelled registration by June 30, 2023, but after furnishing their returns and taxes.
• An applicant (other than a person notified under sub-section (6D) of section 25) who opts for the Aadhaar authentication must go through the process of Aadhar authentication, If not then they must undergo biometric-based Aadhaar authentication and taking photographs of the applicant.
• The taxpayers who failed to file GSTR-9 for the financial year 2017-18, 2018-2019, 2019-2020, 2020-2021, and 2021-2022, can file their returns between 1st April to 30 June 2023 with a waived late fee of Rs. 20000.
• Those registered taxpayers who failed to file their valid returns within the thirty days of receiving an assessment notice issued on or before the 28th of February 2023, can file their returns by 30th of June 2023 along with the late fee & interest.
• The late fee for GSTR-9 for the financial year 2022-23 will be applicable as follows- Rs. 50/day for turnovers up to Rs. 5 Crores, up to Rs. 100/day for turnovers between Rs. 5 Crores to Rs. 20 Crores, and up to Rs. 200/day for turnovers above Rs. 20 Crores.
• The new GST Amnesty scheme would offer relief to taxpayers with outstanding GST returns by enabling them to complete their prior filings without incurring significant fines. This scheme will assist firms in paying their debts and timely filing any outstanding returns, which will ultimately result in a more effective GST system in India.

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Assessment Order

Those registered taxpayers who failed to furnish a valid return within the 30 days from the service of the assessment order issued on or before the 28th day of February, 2023 such individuals must submit the aforementioned return by June 30, 2023, along with the payment of interest and late fee.

Revocation of Cancelled Registrations

This new GST amnesty scheme also provides relief to taxpayers whose registration has been cancelled on or before 31st December 2022 or who could not apply for the revocation of canelled registration within the prescribed deadline, must follow the below-mentioned procedures for revocation of cancelled registration-

• Applicable taxpayers can apply for the revocation of cancelled registration by the 30th of June 2023.
• The application for revocation of cancelled registration must be filed only after furnishing the returns with the late fee & due tax effective date of cancellation of registration.

Note- There will not be any extension of the period provided for applying to such cases.

Aadhar Authentication

Under the new GST Amnesty scheme, any applicant or entity other than those notifies under section sub-section (6D) of section 25, may choose to authenticate their Aadhaar number during the GST registration process. If the Aadhaar number is authenticated, the application submission date will be deemed to be the earlier date of authentication or 15 days following the submission of Part B of FORM GST REG-01 (under sub-rule 4). In case, if that authentication is unsuccessful, the applicant will have to go through biometric Aadhaar authentication and, if they are an individual, then they must provide a photo.

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GSTR-4

Under the new GST amnesty scheme, Composition taxpayers who failed to file their returns in FORM GSTR-4 from July 2017 to March 2022 may do so between 1st April of 2023 and 30 June of 2023, with a late fee of Rs. 500/year. Small taxpayers who have neglected to file their returns for a variety of reasons are relieved by this provision.

Late fee of GSTR-9

The taxpayers who failed to file GSTR-9 for the financial year 2017-18, 2018-2019, 2019-2020, 2020-2021, and 2021-2022, can file their returns between 1st April to 30 June 2023 with a waived late fee of Rs. 20000. However, a late fee for the financial year 2022-23 will be applicable as follows-

• a) If Turnover is up to Rs. 5 Crores – Late Fees of Rs. 50 per day (Rs. 25 CGST and Rs 25 SGST).
• b) If Turnover is between Rs. 5 Crores to Rs. 20 Crores - A late fee of Rs. 100 per day (Rs. 25 CGST and Rs 25 SGST).
• If Turnover is above Rs. 20 Crores - A late fee of Rs. 200 per day (Rs. 25 CGST and Rs 25 SGST).

Late Fee for GSTR10 & Extended Due Dates

If GSTR10 or the final return is not filed in the provided time frame then the penalty of Rs. 1000 will be fetched while filing it between 1st April of 2023 to 30th June of 2023. Additionally, the government has also extended the time limit for the issuance of the under section 73 of the Act for recovery of tax not paid or short paid or of ITC wrongly availed or utilized. Following are the extended due dates:

• For F.Y. 2017-18, it’s up to 31-12-2023,
• For 2018-19 it’s 31-03-2024
• For F.Y.2019-20 and 2020-21, it’s up to 30-06-2024.

Note: It is worth noting that the extension of the time limit for filing GSTR-10 and issuance of an order under section 73 is only applicable to those taxpayers who have opted for the new GST amnesty scheme.

Conclusion

The new GST amnesty scheme may be a big relief for taxpayers by reducing the hefty penalties on remaining GST returns. This scheme aims to provide several benefits such as the revocation of cancelled registration, Aadhar authentication, composition taxpayers, extended due dates as well as relief for the late fee of GSTR9 and GSTR10. The amnesty scheme is focused to encourage the non-compliant taxpayers to file their returns in timely manner.

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