New Amnesty Scheme- A relief to taxpayer under GST

In its 43rd GST Council Meeting headed by Mrs. Nirmala Sitharaman on 28th May, 2021 via video conferencing to discuss various relief measures which includes Amnesty Scheme  provided to small businesses and corporate houses. Amnesty refers to a relaxation extended by Government to specific group of persons by way of capping of late fee at a specific amount to different category of persons. Through ‘Amnesty Scheme’ the Governments’ intention is to encourage taxpayers to file their returns  pending since July, 2017.

The main feature of the relief measures provided by the Government are as follows :

  • Taxpayers can avail the benefits of this scheme on ll GSTR 3B returns pending since July, 2017.
  • This scheme will involve capping of late fees at a specific amount for specific category of taxpayers.
  • The scheme will be available only from 1st June, 2021 to 31st August, 2021.

The GST Council have announced various measures to provide relief on Goods and Services in its 43rd meeting. In this blog we have covered one of the relief measures which caught our attention due to its necessity was the Amnesty Scheme under GST.

We are providing some points which you must know about the Amnesty Scheme.

In an attempt to provide relief to taxpayers with long pending returns, the Council has announced the capping of late fees for specific categories of taxpayers. The late fee for not furnishing GSTR-3B for the tax periods between July 2017 to April 2021 has been reduced and the scheme will benefit around 89% of taxpayers. 

Under the Amnesty Scheme, the Council has provided relief to taxpayers with pending GST returns. This scheme will be valid between June 1st, 2021 and August 31st, 2021. 

Taxpayers with NIL liability

The late fee is now capped at ₹500 (₹250 each for CGST and SGST) for each return for taxpayers with NIL tax liability between July 2017 to April 2021. 

Taxpayers with liabilities The late fee is now capped at ₹1000 (₹500 each for CGST and SGST) per return for taxpayers with tax liabilities between July 2017 to April 2021.