What is GST Amnesty Scheme?
GST Amnesty Scheme is a relief measure introduced by the government to allow taxpayers to file their pending GST returns with reduced or waived late fees. These schemes are designed to help taxpayers who missed filing their returns due to various reasons to become compliant without facing prohibitive penalties.
Objectives of Amnesty Schemes
- • Provide relief to taxpayers with compliance backlog
- • Increase tax compliance and revenue collection
- • Allow taxpayers to regularize their GST status
- • Reduce litigation and disputes
- • Improve ease of doing business
The amnesty schemes have been introduced multiple times since GST implementation, with the most recent ones focusing on capping late fees for regular filing.
Current Amnesty Provisions (2024)
While specific amnesty schemes with time limits have expired, the government has made permanent changes to late fee structures to provide ongoing relief to taxpayers.
Current Late Fee Cap
| Return Type | Nil Liability | With Liability |
|---|---|---|
| GSTR-3B (Monthly/Quarterly) | ₹500 (₹250 CGST + ₹250 SGST) | ₹1,000 (₹500 CGST + ₹500 SGST) |
| GSTR-1 (Monthly/Quarterly) | ₹500 (₹250 CGST + ₹250 SGST) | ₹1,000 (₹500 CGST + ₹500 SGST) |
| GSTR-4 (Composition) | ₹500 | ₹1,000 |
| GSTR-9 (Annual Return) | ₹500 | ₹1,000 |
| GSTR-9C (Reconciliation) | ₹1,000 | ₹1,000 |
Key Points
- • Late fee is capped at the above amounts irrespective of delay period
- • No separate amnesty notification required - available throughout the year
- • Can file returns for previous financial years with capped late fees
- • Interest on tax liability still payable at 18% p.a.
Late Fee Structure - Detailed
Normal Late Fee Calculation (Without Amnesty)
For GSTR-3B and GSTR-1:
- • ₹50 per day (₹25 CGST + ₹25 SGST) - with tax liability
- • ₹20 per day (₹10 CGST + ₹10 SGST) - nil liability
- • Maximum: ₹10,000 (₹5,000 CGST + ₹5,000 SGST)
Amnesty Late Fee (Current)
With Amnesty Benefit:
- • ₹1,000 fixed (₹500 CGST + ₹500 SGST) - with tax liability
- • ₹500 fixed (₹250 CGST + ₹250 SGST) - nil liability
- • Irrespective of number of days delayed
Example Savings
Taxpayer filing GSTR-3B after 6 months (180 days):
- • Normal late fee: ₹50 × 180 = ₹9,000
- • With amnesty: ₹1,000 (fixed)
- • Savings: ₹8,000 (89% reduction)
How to Avail Amnesty and File Pending Returns
Login to GST Portal
Access gst.gov.in with your credentials
Navigate to Returns
Go to Services → Returns → Returns Dashboard
Select Financial Year
Choose the FY for which returns are pending
File Return
Select the return (GSTR-3B/GSTR-1) and click "Prepare Online"
Enter Details
Fill in outward/inward supplies and tax liability
Pay Tax and Late Fee
Create challan and pay tax + late fee (capped amount)
File Return
Submit return using DSC or EVC
Important Notes
- • File returns in chronological order (oldest first)
- • Ensure tax payment before filing to avoid rejection
- • Late fee auto-calculated as per capped amount
- • ARN generated after successful filing
Benefits of Filing Pending Returns
Compliance Benefits
- • Avoid registration cancellation
- • Restore compliance rating
- • Continue e-way bill generation
- • Enable filing of subsequent returns
Financial Benefits
- • Claim eligible Input Tax Credit
- • Reduce penalty accumulation
- • Avoid recovery proceedings
- • Eligible for government tenders
Legal Benefits
- • Avoid show cause notices
- • Prevent assessment under Section 62
- • Reduce litigation risk
- • Clean audit trail
Business Benefits
- • Maintain customer relationships
- • Issue tax-compliant invoices
- • Participate in e-commerce platforms
- • Access business loans
Consequences of Non-Filing
Failure to file GST returns even with amnesty provisions can lead to severe consequences:
| Consequence | Details |
|---|---|
| Registration Cancellation | GST registration can be cancelled for non-filing of returns for 6+ months |
| Best Judgment Assessment | Tax officer may assess tax based on available information |
| Penalty | ₹10,000 or 10% of tax due, whichever is higher |
| Prosecution | In severe cases of tax evasion |
| E-way Bill Block | Cannot generate e-way bills if GSTR-3B not filed for 2+ months |
| ITC Block for Recipients | Customers cannot claim ITC on your supplies if you don't file GSTR-1 |
ITC Reversal Rules for Late Filing
Input Tax Credit (ITC) rules are strict regarding late filing of returns:
Rule 36(4) Restriction
- • ITC is available only if the corresponding invoice appears in GSTR-2B
- • Supplier must file GSTR-1 for recipient to claim ITC
- • ITC for a month must be claimed by the earlier of:
- - September 30 of next FY, OR
- - Actual filing of GSTR-9 (Annual Return)
New Section 16(4) Amendment
As per the latest amendments, ITC cannot be claimed if the return is filed after September 30 of the next financial year or after the actual date of filing annual return, whichever is earlier. This makes timely filing crucial for preserving ITC.
Past Amnesty Schemes
The government has introduced several amnesty schemes in the past:
| Scheme | Period | Key Benefit |
|---|---|---|
| Amnesty Scheme 2020 | July-September 2020 | Waived late fees for GSTR-3B (July 2017-Jan 2020) |
| Amnesty Scheme 2021 | March-June 2021 | Reduced late fees for GSTR-1 |
| Amnesty Scheme 2022 | April-June 2022 | File GSTR-3B with capped late fees |
| Annual Return Amnesty 2022 | December 2022 | File GSTR-9/9C with reduced late fees |
| Permanent Amnesty | 2023 onwards | Capped late fees made permanent |
Frequently Asked Questions
Q: Can I file returns from 2017-18 with current amnesty?
Yes, you can file returns for any previous financial year with the capped late fee (₹500/₹1,000). The system automatically calculates the reduced late fee. However, note that ITC may not be available for very old returns due to time limits.
Q: Is interest also waived under amnesty?
No, amnesty schemes typically waive or reduce only late fees. Interest at 18% per annum on tax liability must still be paid. Interest is calculated from the due date to the actual payment date.
Q: Can I claim ITC on returns filed under amnesty?
ITC can be claimed only if the return is filed within the time limit prescribed under Section 16(4) - earlier of September 30 of next FY or filing of annual return. For very old returns, ITC may be time-barred.
Q: What if my registration is cancelled for non-filing?
You need to apply for revocation of cancellation within 30 days of cancellation order. File all pending returns with late fees and submit the revocation application on the GST portal.
Q: Can I file GSTR-1 without filing GSTR-3B?
The system typically requires filing GSTR-3B first for the tax period before filing GSTR-1. It's recommended to file returns in chronological order - GSTR-3B first, then GSTR-1.
Q: Is there amnesty for annual returns (GSTR-9)?
Yes, the capped late fee (₹500/₹1,000) also applies to GSTR-9. However, note that filing GSTR-9 is mandatory only for taxpayers with turnover above ₹2 crores.
Q: Can I pay late fee without paying tax liability?
No, you must pay both the tax liability and late fee to file the return. The return cannot be filed without full payment of tax, interest, and late fee.
Q: Will the amnesty scheme be extended further?
The current capped late fee structure is now permanent and not time-bound. Taxpayers can avail of reduced late fees anytime for filing pending returns.