What is GST Amnesty Scheme?
The word ‘Amnesty’ means – grant an official pardon to. In the 43rd GST Council Meeting, the finance ministry brought out the GST Amnesty Scheme to provide relief to taxpayers regarding late fees for pending returns. It basically reduces the tax burden off taxpayers during the pandemic. This scheme is valid from June 1, 2021 to August 31, 2021.
Relief Information via GST Notification 19/2021
To provide relief to the taxpayers for not filing GSTR-3B, the late fee for the tax periods from July 2017 to April 2021 has been capped as follows:
Note: The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are filled between June 1, 2021 to August 31, 2021.
Relaxation Applicable from 1st June, 2021 onwards
1. Relaxation in Late fees for Return Filings of GSTR 3B and GSTR 1
Rationalization will be applicable on ‘late fees to be paid’ on account of delay in filing GST return in form GSTR-3B and FORM GSTR-1 for June, 2021 onwards.
To reduce burden of late fee on taxpayers, the late fee is being capped in the GST Amnesty Scheme, as follows:
| Taxpayer’s category | Relaxations in Late Fees |
| 1. Taxpayers with nil tax Liability (Nil Return) | Rs. 500/- (Rs. 250/- each for CGST & SGST) per return |
| 2. For Taxpayers with Tax Liability: | |
| a) For taxpayers with an aggregate turnover in preceding FY upto Rs. 1.5 crores | Rs. 2000/- (Rs. 1000/- each for CGST & SGST) per return |
| b) For taxpayers with an aggregate turnover in preceding FY between Rs. 1.5 crores to Rs. 5 crores | Rs. 5000/- (Rs. 2500/- each for CGST & SGST) per return |
| c) For taxpayers with an aggregate turnover in preceding FY above Rs. 5 crores | Rs. 10000/- (Rs. 5000/- each for CGST & SGST) per return |
2. Relaxation in Late fees for filing GSTR 4
Rationalization will be applicable on ‘late fees to be paid’ on account of delay in filing GSTR 4 by composition taxpayers for prospective tax periods for Financial Year 21-22 onwards.
| Taxpayer’s Category | Relaxations in Late Fees |
| 1. Taxpayers having nil tax Liability (Nil Return) | Rs 500/- (Rs 250/- each for CGST & SGST) Per return |
| c) For other Taxpayers | Rs 2000/- (Rs 1000/- each for CGST & SGST) Per return |
3. Relaxation for availing Input Tax Credit under GST
Compliance related relief for GST Taxpayers Amendment in Rule 36(4) of CGST Rules Relaxation in ITC Claim. Relaxation: 105% cap on availing ITC will be applicable on the cumulative basis of tax periods April, May and June 2021. It will also be applied in GSTR – 3B for the Tax Period of June, 2021.
4. Relaxation in Late fees for filing of GSTR 7
Rationalization of late fee ‘to be paid’ on account of delay in filing GSTR-7 by Tax Deductors at Source for June, 2021 onwards.
Relaxation Given:
| Filing Particular | Relaxations |
| Late fee payable for delayed furnishing of Return in form GSTR-7 | Rs 50 /- (Rs 25 each CGST & SGST) Per return |
| Maximum amount of late fee capped | Rs 2000/- (Rs 1000 each CGST & SGST) Per return |
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GST Reconciliation with IRIS Sapphire
Yes, courtesy to IRIS Sapphire, the preferred GST solution of top organizations across the country, reconciliation can be easier than you think. Built-in with advanced algorithm and fuzzy logic, IRIS Sapphire helps you reconcile all your data, with no-hassles guaranteed. It swiftly scans through your purchase and the suppliers’ sales data and points out the discrepancies. Furthermore, its smart assistance can help you to rectify the discrepancies (if any), on the go.
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