Benefits and mechanism of GST Amnesty Scheme

Benefits and mechanism of GST Amnesty Scheme The Goods and Services Tax (GST) Council is considering one-time amnesty scheme to facilitate exit for nil filers and non-filers. Lets discussed what is GST Amnesty Scheme through this article.

Benefits and mechanism of GST Amnesty Scheme

What is GST Amnesty Scheme

GST Amnesty Scheme is a one-time amnesty scheme to facilitate the exit of certain category of registration holders who have not filed there GST returns till now. As per the sources approximately there is 25 lakh nil filer assessees while on an average 10 percent of assessees have never filed their returns so far. These assessees do not contribute anything but add to the work of the tax system and therefore GST Amnesty Scheme has been introduced by government for their exit.

What are the benefits of GST Amnesty Scheme

GST Amnesty Scheme will

• bring down compliance cost of registration holder,
• will reduce pressure on the GST Network and
• encourage compliance under taxation laws

What is the mechanism adopted by government to give benefit of GST Amnesty Scheme

Any registered entity not filing the return will have to pay penalty in the form of late fee. For late filing of GSTR 3B, the entity is obliged to pay a late fee of Rs. 50 a per day, that is, Rs. 25 per day in each case of CGST and SGST (in case of any tax liability) and Rs. 20 a day, that is, Rs. 10 in each CGST and SGST (in case of Nil tax liability) subject to a maximum of Rs. 5,000 from the given due date to the actual date when the returns are finally filed. GST Amnesty scheme is likely to give relief from such late fees.

What can be backlogs of GST Amnesty Scheme

• Timing of the scheme,
• immunity from penal consequences and
• commitment to not initiate any investigations for those who participate in such scheme

are some critical aspects on which the success or failure of GST Amnesty Scheme depends. In another words we can say thatGST Amnesty Scheme can be a kind of gst late fees waiver scheme.

Kindly note that as per the announcement made in 31st GST Council Meeting Government has WaivedLate Fees on GSTR3B, GSTR-1 & GSTR-4. Official Notification in this Regards has been issued by the CBIC on 31st December 2018. The amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the return in FORM GSTR3B, GSTR-4 & GSTR-1,from July, 2017 to September, 2018 by the due date but furnishes the said return between the period from 22nd December, 2018 to 31st March, 2019.

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