The finance ministry scheme vide notification number 19/ 2021 have passed GST amnesty scheme on 1 st June, 2021 under which taxpayers have to pay a reduced filing in case of delayed filing by a period of 3 months i.e. till 30 th November. The objective of this order was to give relief to those person who have failed to file GSTR – 3B within a due date.

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BENIFITS GIVEN UNDER THE SCHEME

1. The CGST Rule 36(4) that restrict provisional ITC claims up to 5% of GSTR – 2B and GSTR – 3B is now relaxed and taxpayer can file cumulatively for April and May while GSTR – 3B for May, 2021.

2. The late fees and interest on late filing of GSTR – 3B have been relaxed depending upon their turnover which are as follows

(a) Turnover exceeding Rs. 5 crores in a preceding financial year and GSTR – 3B is filed on monthly basis: Interest reduced to 9% for filing before 4 th June,2021 and 18% thereafter. No penalty will be levied till 4 th June.

(b) Turnover up to 5 crores in a preceding financial year and GSTR – 3B is filed monthly:

Interest reduced to 9% for filing before 5 th June to 19 th June, 2021 and 18% thereafter. No penalty will be levied till 19 th June.

(c) Turnover up to 5 crores in a preceding financial year and GSTR – 3B is filed quarterly:

Interest reduced to 9% for filing before 8 th May to 21 st May, 2021 and 18% thereafter. No penalty will be levied till 23 rd May.

3. The filing of GSTR – 3B and form GSTR -1 by companies using electronic verification code (EVC), instead of digital signature for the period of 27 th April, 2021 to 31 st August,2021 which Until the 31st of October 2021, the contract will remain in effect.

LATE FEES PAYABLE UNDER THE SCHEME

The maximum late fees are restricted up to Rs. 1000 per return “500” (250 CGST, 250 GST). for GSTR – 3B with tax liability other than nil GSTR – 3B filing.

However late fees payable for filing nil GSTR – 3B is There are Rs 500 (250 CGST and 250 GST).”

These are the total fees calculated for every day of delay and maximum limit is subject to the above.

LAST DATE FOR FILING UNDER GST AMNESTY SCHEME

The last date of filing under GST Amnesty Scheme has been extended from 31 st August to 31 st November, 2021. The taxpayer who have not filed his GSTR – 3B between July, 2017 to April,2021 can now file such return till 31 st November with minimum applicable fees.

CHALLANGES UNDER GST AMNESTY SCHEME

Although the scheme aims to provide reliefs to non – filers who fails to pay their GST returns in due times it has some challenges or disadvantages

1. No waiver of interest in filing GSTR – 3B. Only maximum late fees have been reduced

2. Although Amnesty Scheme allows tax payment to file their due returns it is still silent regarding ITC claims in the assessment year for that of preceding financial year.

3. There is no relief in waiver or reduction of late fees or interest in late filing of GSTR – 1

4. Without having a valid GSTIN, taxpayer could not file GSTR – 3B returns. However as per notification 34/ 2021, the time limit to apply for revocation of cancellation of GSTR gets extended up to 30 th September, 2021 if GSTIN were cancelled between 1 st MRCH, 2020 TO 31 ST GSTR – 3B was not filed by August, 2021

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Taxblock India Private Limited, founded in 2019, is a fintech startup located in Pune, Maharashtra. We are enrolled as an E-Return Intermediary with Income Tax Department & have established an In-House team of Technology & Tax Experts to build a “Financial Compliance Ecosystem” for Indi View Full Profile

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