GST AMNESTY SCHEME AND LATE FEE RELAXATIONS 2021

43RD GST COUNCIL MEETING-
The 43rd GST Council Meeting was conducted on 28th May 2021 at 11 a.m. via videoconferencing. The chairman of the 43rd GST Council meeting was the Union Finance Minister Mrs. Nirmala Sitaraman. The GST Council meeting was conducted to have a discussion with the Finance Ministers of the states of the country.
This was a very important meeting where many important topics regarding covid supplies were discussed. But one main topic that came up during the meeting was GST Amnesty and the Late Fee relaxations.
GST AMNESTY SCHEME-
Amnesty is a Greek word that means forgiveness. So, GST Amnesty is nothing but a “forgiveness” from the government’s side to the taxpayers.
GST Amnesty Scheme for GSTR-3B helps the industrial and small businesses in regards to the late fees.
• GST Amnesty Scheme 2021 has been recommended for reducing late fees that small or medium scale businesses need to pay.
• This Amnesty Scheme 2021 will prove beneficial for around 89% of the total taxpayers in the country. As the country is facing a pandemic, this scheme will benefit a lot of small and medium scale businesses.
• Under the GST Amnesty Scheme 2021, the taxpayers can now file their pending returns without worrying about paying a very high penalty fee.
• The penalty fees are reduced by a great amount in accordance with the Amnesty Scheme.
LATE FEE RELAXATION PERIOD-
• The taxpayers can benefit from the GST Amnesty Scheme 2021, for all the returns pending from July 2017 to April 2021.
FOR GSTR-1 AND GSTR-3B:
• In the case of Nil return (no tax liability for the particular time), the maximum amount of penalty that can be charged is Rs 500 per return (Rs 250 for CGST and SGST each).
• In case of a Return that is not nil (tax is liable for the mentioned period), the maximum late fee that can be charged is Rs 1000 per return (Rs 500 for CGST and SGST each).
FOR GSTR-4:
• In the case of Nil return (no tax liability for the particular time), the maximum amount of penalty that can be charged is Rs 500 per return (Rs 250 for CGST and SGST each).
• In case of Return that is not nil (tax is liable for the mentioned period), the maximum late fee that can be charged is Rs 2000 per return (Rs. 1000 for CGST and SGST each).
FOR GSTR-7:
• Late Fee payable for delayed furnishing of GSTR-7 Return form Rs. 50 will be charged (Rs. 25 for CGST and SGST each per return).
• The maximum amount of late fee that can be charged is Rs. 2000 per return (Rs. 1000 for CGST and SGST each).
TIME PERIOD OF GST AMNESTY SCHEME 2021-
GSTR-3B can be filed from 1st June 2021 to 31st August 2021 for the taxpayer to benefit from the GST Amnesty Scheme 2021.

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