Several GST (Goods and Services Tax) amnesty schemes have been launched by the Indian government to provide relief to taxpayers who have not complied with the GST laws. These schemes aim to reduce the compliance burden on taxpayers and encourage them to come forward and rectify any non-compliances.
Under this scheme, taxpayers who had not filed their GST returns during this period could file their returns without paying any late fees or penalty. However, they were required to pay the due taxes for the period, along with interest at a reduced rate of 9% instead of the usual rate of 18%.
One of the most recent amnesty schemes was the GST amnesty scheme launched by the Central Board of Indirect Taxes and Customs (CBIC) in 2021. This scheme was called the “GST Amnesty Scheme, 2021” and was applicable to taxpayers who had not filed their GST returns for the period of July 2017 to April 2021.
Because of the pandemic in 2021, taxpayers requested the government of India to bring back the GST Amnesty Scheme for 2021. Keeping the pandemic in mind, the government introduced it again in 2021. Hence, the government has extended the “GST Amnesty Scheme for 2022” to help the public tackle the situation.
Conditions to avail of the GST amnesty scheme:
- The following are the conditions to avail of the GST amnesty scheme:
- The business must have a valid GST registration
- The GST returns must be filed for all tax periods up to September 2020
- Any outstanding tax liabilities must be paid in full by the due date
Benefits of the GST amnesty scheme
The GST amnesty scheme provides businesses with the following benefits:
- Waiver of late fees and penalties
- Reduction in interest payable on outstanding tax liabilities
- Immunity from prosecution or further legal action
The last Date for the GST Amnesty Scheme 2022 was 30th September 2022.
Smaller businesses have been affected heavily because of the Covid-19 pandemic. It was very difficult for them to pay heavy penalties on account of late GST filings. So, the “GST Amnesty scheme 2022” was a huge relief for such businesses, with help of this scheme they cleared their previously pending filings without the burden of high penalties.
What happens if businesses do not avail of the GST amnesty scheme?
If businesses do not avail of the GST amnesty scheme, they will be liable to pay the full amount of late fees, penalties, and interest on outstanding tax liabilities. They may also face legal action and prosecution for non-compliance with GST laws and regulations.
Here are some frequently asked questions (FAQs) on the GST amnesty scheme:
Q. Can businesses claim input tax credit (ITC) under the GST amnesty scheme?
Answer: Yes, businesses can claim ITC under the GST amnesty scheme for any GST paid on inputs used in the furtherance of their business.
Q. Who can avail of the GST amnesty scheme?
Answer: Any business that has not complied with GST laws and regulations in the past can avail of the amnesty scheme.
Q. When is the last date to avail of the GST amnesty scheme?
Answer: The last date to avail of the GST amnesty scheme is 31st December 2021.
Q. Can businesses rectify any errors or omissions in their GST returns under the amnesty scheme?
Answer: Yes, businesses can rectify any errors or omissions in their GST returns under the amnesty scheme.