GST Amnesty Scheme 2024

The GST Amnesty Scheme 2024 is a lifeline for taxpayers who missed filing returns on time, enabling them to file past returns with reduced late fees and avoid heavy penalties. Introduced by the government to encourage voluntary compliance, this scheme allows taxpayers who previously defaulted to regularize their GST filings without facing prohibitive penalties.

Let’s look into the overall concept dates and procedures of the GST Amnesty Scheme, its applicability, limits, latest amendments, circulars, case laws, common issues, and their solutions.

The GST Amnesty Scheme 2024 provides taxpayers an opportunity to file their overdue GST returns for a specified period with reduced late fees. It primarily applies to those who have not filed their GSTR-3B (monthly return) for certain tax periods, allowing them to avoid steep penalties and restore compliance.

2. Key Features of the GST Amnesty Scheme

Reduced Late Fees: The scheme offers significant reductions in late fees for non-filing returns, capped for different types of taxpayers.

Applicable for Past Periods: It covers non-compliance in terms of filing returns, focusing mainly on GSTR-3B for specific months, particularly those before June 2023 (as per the latest extension).

Relief for Small Taxpayers: The scheme is particularly beneficial for smaller businesses with nil tax liability, as their late fees are nominal.

Valid for Limited Time: The scheme is only open for a limited period, usually ranging from a few months, during which taxpayers can take advantage of the reduced penalty structure.

3. Latest Amendments and Extensions

The GST Amnesty Scheme has undergone several updates to accommodate taxpayers’ needs. Here’s the latest:

Extension of the Scheme till January 31, 2024

The government has extended the deadline for availing benefits under the Amnesty Scheme to January 31, 2024. This extension provides a longer window for taxpayers to file returns and regularize their compliance.

Reduction in Late Fees for GSTR-3B

As per Notification No. 22/2021 – Central Tax, late fees for non-filers of GSTR-3B have been capped based on the taxpayer’s turnover and the return type (nil, turnover up to ₹5 crores, or turnover above ₹5 crores).

4. Eligibility and Applicability of the GST Amnesty Scheme

Applicable to:

All taxpayers who have defaulted in filing GSTR-3B returns between July 2017 and March 2023.

Late Fee Reductions:

For Nil returns: Late fees are capped at ₹500 per return.

For taxpayers with tax liability:

Turnover up to ₹5 crores: Late fees capped at ₹2,000 per return.

Turnover above ₹5 crores: Late fees capped at ₹5,000 per return.

Non-applicable for:

Annual returns (GSTR-9) and those who have already paid the full late fees.

5. Common Problems Faced Under the GST Amnesty Scheme and Solutions

a. High Penalties for Non-Filing Earlier

Problem: Before the amnesty, the non-filing of returns resulted in huge penalties that piled up over time. Solution: Under the amnesty scheme, taxpayers can file these returns with reduced late fees. Take advantage of this opportunity to clear outstanding liabilities.

b. Lack of Awareness and Missing Deadlines

Problem: Taxpayers often miss the amnesty deadlines due to a lack of awareness. Solution: Stay updated on notifications and file returns promptly. If missed, always keep an eye on potential future extensions or amnesty windows.

c. GSTR-3B Mismatch Issues

Problem: Mismatches between GSTR-1 and GSTR-3B have caused compliance issues. Solution: Reconcile all sales data and purchase records before filing past returns to ensure accuracy. Utilize auto-populated forms in the GST portal for easier filing.

6. Important Notifications and Circulars

 Notification No. 03/2023 – Central Tax

This notification extended the Amnesty Scheme till January 31, 2024, allowing taxpayers more time to file past returns with reduced late fees.

Notification No. 19/2021 – Central Tax

It capped late fees for small taxpayers, which significantly reduced the burden on businesses with nil returns.

 Circular No. 156/12/2021-GST

She clarified doubts on how the amnesty scheme can be availed by those who had not filed returns for multiple periods.

7. Key Case Laws Regarding GST Amnesty Scheme

Case: M/s. KSC Builders Pvt Ltd v. State of Maharashtra (2022)

Issue: The taxpayer failed to file GSTR-3B returns on time and faced hefty late fees.

Judgment: The court allowed the taxpayer to avail of the benefits under the Amnesty Scheme and file returns with reduced late fees, showcasing the scheme’s retrospective application.

Case: M/s. AK Construction v. Union of India (2021)

Issue: The taxpayer sought relief for late fees accrued due to non-filing.

Judgment: The High Court directed GST authorities to allow relief under the Amnesty Scheme, emphasizing the scheme’s aim to provide relief and not to be punitive.

 8. How to Avail the GST Amnesty Scheme 2024

1. Log in to the GST portal using your credentials.

2. Go to the Services tab and select Returns.

3. File the pending GSTR-3B returns for the applicable periods.

4. Pay the reduced late fees as calculated automatically by the portal.

5. Reconcile your tax payments to avoid discrepancies between GSTR-1 and GSTR-3B