Pardons extended to a specific group of people by the government is known as Amnesty. And it has been termed as ‘Amnesty Scheme’ under GST to encourage taxpayers to file their returns which is pending since 2017.

Specific categories of taxpayers will need to pay late fees and this scheme is available from 1st June, 2021 & August 3, 2021.

As per the law, the person who is registered under GST has to file return anyhow i.e. in any form. Return must be filed by the registered person either monthly (normal supplier) or quarterly (supplier choosing composition scheme). Monthly return must be filed by an ISD (Input Service Distributor) and show the credit distributed details per month

The government has notified that the registered persons who failed to furnish the return in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from the 1June, 2021 to the 31August, 2021, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of five hundred rupees.

In the 43rd Council Meeting, the GST Council announced several relief measures for the taxpayers & on Goods and Services. One of the points that caught everyone’s attention is the Amnesty Scheme under GST.

And here is what you need to know about the Amnesty Scheme.

This scheme aims to provide relief to the taxpayers with the pending returns and penalty has been announced for specific categories of the taxpayers. The late fee is for not entering into GSTR3B for the period 2017-2021. The late fees has been reduced and will benefit the taxpayers upto 89%.

The council has provided relief to the taxpayers and will be valid between 1st June, 2021  and 31st August, 2021.

Taxpayers with Liability

This late fees is now capped at CGST - Rs 500/- and SGST - Rs 500/- Total Rs 1000/- per return for taxpayers with tax liabilities between July 2017 to April 2021

Taxpayers with NIL Liability

This late fees is now capped at CGST - Rs 250/- and SGST - Rs 250/- Total Rs 500/- per return for taxpayers with Nil tax liabilities between July 2017 to April 2021

The Amnesty Scheme under GST is announced to encourage taxpayers with returns pending since 2017.