What relief GST Amnesty Scheme 2021 has missed to provide?

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CA Pratibha Goyal | May 31, 2021 | Views 1347264

What relief GST Amnesty Scheme 2021 has missed to provide?

What relief GST Amnesty Scheme 2021 has missed to provide?

This article discusses all about the “GST Amnesty Scheme 2021”. We will also discuss that who are the taxpayers for which this scheme is beneficial and the taxpayers for which this scheme is not beneficial.

GST Council in its 43rd GST Council Meeting has announced a very much awaited benefit to MSME Sector. The Benefit was GST Amnesty Scheme 2021.

First, let us understand what benefit has been given in GST Amnesty Scheme 2021.

Late Fees for Non-Furnishing GSTR-3B has been waived for the period July 2017 to April 2021. The Waiver/Reduction is as Follows:

  • Late Fees Capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) for taxpayers with No Tax Liability
  • Late Fees Capped to Rs 1000 (Rs 250 CGST + Rs 250 SGST) for taxpayers with Tax Liability

To avail of this benefit, you need to file your GSTR-3B between 1st June 2021 – 31st August 2021.

Who Benefitted the Most?

This Scheme is helpful especially for Taxpayers who have nill tax liability but could not file their GSTR-3B due to heavy Late Fees Burden.

What relief GST Amnesty Scheme 2021 has missed to provide?

Input Tax Credit [ITC] Relief not given in the GST Amnesty Scheme 2021

As per Section 16 of the CGST Act 2017, the due date for Claiming ITC for Financial Years Covered in the Scheme is as follows:

Year Due Date of Claiming ITC
FY 2017-18 Due Date of Furnishing GSTR-3B for the month of March 2019
FY 2018-19 Due Date of Furnishing GSTR-3B for the month of September 2019
FY 2019-20 Due Date of Furnishing GSTR-3B for the month of September 2020

Now please understand now since these due dates have lapsed, Taxpayers having Tax Liability have to pay tax, but are not allowed to take Input Tax Credit. For That Reason, the Industry was demanding GST Amnesty Scheme with ITC.

You May Also Refer: GST Amnesty Scheme with ITC

No Cash Refund for Taxpayers who have already paid heavy amount of GST Late Fees

There is no clarification that if a taxpayer who has paid late fees and filed GSTR-3B before the announcement of this scheme will get any Tax Refund. Ideally this an Injustice for them.

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