Save the date June 30, 2023 for Amnesty Scheme

[Sandeep Saini]

As we all know the GST has come into force in India on July 1, 2017. It appears from recent notifications that the Government wants to give an opportunity to taxpayers to regularize their compliances before completion of six years of GST in India. Therefore, the Government has come up with amnesty scheme to provide following benefits, which can be availed only upto June 30, 2023:

1. Revocation of cancelled GST registration: Cancellation of GST registration by GST authority due to non-filing of GST return is very prominent now a days. Due to which businessmen are facing problem in doing the business under GST. To give relief to businessman, the government vide Notification No.03/2023- Central Tax dated 31.03.2023 has provided one time opportunity to registered persons whose registration has been cancelled on or before December 31, 2022. Further, the registered persons whose appeal is pending before appellate authority or appeal is cancelled due to time bar can also avail the benefit of this scheme.

The last date to file revocation application under this scheme is June 30, 2023. Therefore, it is the golden opportunity to revoke the cancelled GST registration.

2. Waiver of late fees- Form GSTR-04: Form GSTR-04 is the GST return which is to be filed by the composition dealer (Small businessmen). Those dealers who could not file their GST return of any of the quarter from July 2017 to March 2019 or any of the financial year from 2019-20 to 2021-22 by due date.

Now, they can file their pending returns just by making payment of late fees maximum upto INR 250 per return. Further, in case of nil return there is no requirement of payment of any late fees. The benefit of given scheme can be availed by filing the pending return upto June 30, 2023.

3. Waiver of late fees-GSTR-9/ 9C: Those registered persons who could not file their GSTR-9/ 9C for any of the FY 2017-18 to 2021-22 by due date. Now they can file their GSTR-9/ 9C upto June 30, 2023, just by making maximum late fees of INR 10,000.

4. Waiver of late fees-GSTR-10: GSTR-10 is the final return which is required to be filed within 3 months of cancellation of GST registration. Those who could not file their final return within said 3 months, now they have been given an opportunity to file their final return in Form GSTR-10 upto June 30, 2023 just by making maximum late fees of INR 500.

5. Deemed withdrawal of assessment order passed u/s 62 of CGST Act, 2017: It is very common to receive the notice u/s  46 of CGST Act, 2017 for non-filing of GST return by due date. Further, in case the registered person donot file the GST return even after issuance of notice then the authority passed the best judgment assessment order u/s 62 of CGST Act, 2017.

However, if the registered person file valid return within 30 days of said order then the said order would deemed to be withdrawn. And, in case the valid return is not filed within said 30 days then order will be treated as confirmed and the amount mentioned in the order is required to be paid.

The Government has provided one time opportunity to those registered persons who could not file valid return after assessment order u/s 62, now they can file valid return upto June 30, 2023 and the said assessment order will deemed to be withdrawn.

6. Settlement of default in export obligation by AA/EPCG authorization holder: The exporter/importer who has obtained license under Advance authorization scheme or EPCG scheme of Foreign Trade Policy (“FTP”) and defaulted in meeting export obligation within the prescribed time limit, due to which could not redeem their license.

As a general rule, in case export obligation is not fulfilled and license is not redeemed then the license holder is required to pay customs duty which was saved against the license and interest thereon.

The Government vide Public notice no. 2/2023 dated 01.04.2023 has provided one time opportunity to those AA/EPCG license holders who has obtained license under FTP 2009-14 on or before 31.03.2015. And, also to those AA/EPCG license holders who has obtained license under FTP 2004-09 and before and whose export obligation period was valid beyond 12.08.2013.   

Now, above mentioned license holders who has defaulted in meeting export obligation can get their license redeemed just by making payment of saved customs duty in proportion to unfulfilled export obligation and 100% interest of basis customs duty amount.

For example, let’s say Basic customs duty saved INR 70, additional and special customs duty saved INR 30 and 50% export obligation could not be met. Now under this scheme this case can be regularized and license can be redeemed by making payment of INR 85 ( 50% of 100 + 35 Interest).

The application for availing benefit under the given scheme can be made on or before June 30, 2023.

In view of the above, we can say that June 30, 2023 is very important date to avail benefit under the amnesty scheme.