FinMin notifies GST amnesty scheme for non-filers, small businesses

Enterprises can apply for revocation of cancelled GST registration by June 30 after paying due taxes, interest and penalty

The government has notified amnesty scheme for small businesses, non-filers of final returns, and taxpayers whose Goods and Services Tax (GST) registration has been cancelled.

According to the Central Board of Indirect Taxes & Customs (CBIC) notification, they can apply for revocation of cancelled registration by June 30, after paying due taxes, interest and penalty, CBIC said in a notification.

The move follows the meeting by the GST Council in February, when it recommended that for GST taxpayers whose registration has been cancelled for non-filing of returns be given amnesty by allowing them to file applications for revocation within a specified date.

The apex body has made amendments to the Central GST Act, specifying that businesses whose registration have been cancelled on or before December 31, 2022, and who have failed to apply for revocation of cancellation within the specified period can do so by June 30.

However, the revocation can be applied for only after the assessee furnishes the returns due up to the effective date of cancellation of registration and after paying due taxes in terms of such returns, along with interest, penalty and late fees, the notification said.

No further extension for filing application for revocation of cancellation of registration shall be available in such cases, according to the finance ministry notification, it noted.

Also, CBIC has capped the late fee at Rs 1,000 for registered persons who fail to furnish the final return in Form GSTR-10 by the due date, provided they furnish the said returns by June 30.

GSTR-10 is a final return that needs to be filed by taxpayers who have decided to cancel their GST registration.

The notification states that under the law, the return must be filed within three months of opting for cancellation of registration.

Besides, in a separate notification, the CBIC has also rationalised late fee for delayed filing of annual return in (Form GSTR-9) for FY 2022-23 onwards, for small businesses with turnover up to Rs 20 crore.

Those with an aggregate turnover of up to Rs 5 crore in the said financial year would be charged late fee of Rs 50 per day, subject to a maximum of an amount calculated at 0.04 per cent of his turnover.

Registered persons having an aggregate turnover of between Rs 5-20 crore in the said fiscal would be liable to pay late fee of Rs 100 per day, subject to a maximum of an amount calculated at 0.04 per cent of his turnover.