All About The GST Amnesty Scheme 2023 For Non-Filers

During its 49th meeting held on February 18, 2023, the GST council proposed a fresh amnesty plan for taxpayers who haven't filed their GSTR-4, GSTR-10, and GSTR-9 for the previous fiscal years.

Additionally, the council suggested extending relief to those taxpayers who didn't file revocation against cancellation of registration within the given time limit.

On March 31, 2023, the GST department released multiple notifications to launch this program, which commenced on April 1, 2023. The specifics of the new GST Amnesty Scheme 2023 are outlined below:

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Amnesty To GSTR-9 (Non-Filers)

Notification no. 07/2023 dated March 31, 2023, has been released by the GST department, granting relief to taxpayers who haven't filed their GSTR-9 (The Annual Return) from FY 2017-18 to 2021-22.

According to the notification, taxpayers can submit their GSTR-9 between April 1, 2023, and June 30, 2023, by paying a maximum late fee of Rs. 20,000 (Rs. 10,000/- each for CGST & SGST). Any late fee amount more than Rs. 20,000 will be waived off by the department.

Moreover, the GST department has introduced new rates of late fees from the financial year 2022-23 which are as follows:

Amnesty To GSTR-10 (Non-Filers)

Notification no. 08/2023 dated March 31, 2023, has been issued by the GST department, granting relief to taxpayers who missed the deadline for filing their GSTR-10 (The Final Return after surrender of GST Registration).

According to the notification, taxpayers can submit their GSTR-10 from April 1, 2023, to June 30, 2023, by paying a late fee of a maximum of Rs. 1000 (Rs. 500 each for CGST & SGST). Any late fee amount exceeding Rs. 1000 will be waived off by the department.

Amnesty To GSTR-4 (Non-Filers)

Notification no. 02/2023 dated March 31, 2023, has been issued by the GST department, providing relief to taxpayers who haven't filed their GSTR-4 (The Annual Return for Composition Tax Payers) for the quarters between July 2017 to March 2019 and for the FY 2019-20 to 2021-22. According to the notification, taxpayers can submit their GSTR-4 between April 1, 2023, and June 30, 2023, by paying a maximum late fee of Rs. 500/- (Rs. 250/- each for CGST & SGST). The department will waive off any late fee amount exceeding Rs. 500.

Amnesty To REG-21 Application For Revocation of Cancellation of GST Registration

Notification no. 03/2023 dated March 31, 2023, has been issued by the GST department, providing relief to taxpayers who have not filed Form REG-21 against the cancellation of their GST registration within the specified time. As per the notification, a registered person whose registration was cancelled on or before December 31, 2022, and who failed to apply for revocation on time, shall follow a special procedure to revoke the cancellation of their registration.

• Can apply for the revocation of cancellation of registration by 30h June 2023.
• The application can be filed only after the submission of the returns including the tax due payment by the effective date of cancellation of registration.
• There will not be any type of time extension for such cases.

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Aadhaar Authentication

Under the new GST Amnesty scheme, any applicant or entity other than those notified 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, they must provide a photo.
• Notification no. 06/2023, dated 31/03/2023, specifies that if a registered person fails to furnish a valid return within 30 days from the service of assessment order issued on or before 28/02/2023, then such assessment order shall be deemed to have been withdrawn if the registered person belonging to a specific category that follows the procedure outlined in the notification.
• The registered person will be required to submit the said return on or before 30th June 2023 including the interest or late fees of the return.

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Extended Due Dates u/s 168A of CGST Act

According to notification no. 09/2023 dated 31/03/2023, the Department has extended the time limit for issuing orders under section 73 of the Act for the recovery of tax that has not been paid, has been short paid, or for input tax credit that has been wrongly availed or utilized. The new due dates for issuing such orders are as follows:

• The due date for the financial year 2017-18 is 31st December 2023
• The due date for the financial year 2018-19 is 31st March 2024
• The due date for the financial year 2019-20 is 30th June 2024

The amnesty scheme mentioned above is in effect until 30/06/2023 and offers defaulted registered persons the opportunity to correct their mistakes by paying a nominal fee.

This scheme is a positive step towards bringing defaulted registered persons into compliance and has been well received by a group of taxpayers and professionals.

However, it is important to note that there is no benefit or refund available to registered persons who have already rectified their defaults by paying significant late fees prior to the announcement of this scheme.

While these schemes may provide relief to registered persons who have made genuine mistakes, they may also incentivize others to delay their compliance and wait for similar amnesty schemes.

This may create an unfair situation where regular and honest registered persons who have already rectified their defaults by paying substantial late fees receive no benefit.

Also, Read: "All About New GST Amnesty Scheme w.e.f. 01-04-2023".

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