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Many taxpayers could not file the annual On the other hand, such amnesty scheme for
returns on time. However, their such defaulter taxpayers is unfair to
accumulated late fee had become taxpayers who have been complying
prohibitively high, due to with the regulations and have
which they were avoiding possibly paid a higher
filing the same. This late fee , even more
led to an uncertain than Rs. 20,000/- to
CA. Palkesh Asawa
situation since due to ensure compliance.
non-filing of annual Amnesty For such taxpayers,
returns, they could government may take
not freeze their final a call to provide relief,
t u r n o v e r , a n d Schemes & Changes although it only looks
g o v e r n m e n t like a distant dream
departments were for now.
unable to initiate their Introduced By The R e v o c a t i o n o f
a u d i t , d e m a n d , c a n c e l l a t i o n o f
a s s e s s m e n t Finance Act, registration
proceedings etc.
Many taxpayers have
To bring this system in- faced the issue of
line, government has brought 2023 cancelled GST registration on
an amnesty scheme, wherein, account of non-filing of returns. In
paying the minimum amount of late-fees many genuine cases also, they are unable
enables the taxpayer to complete the pending to file the returns on account of various factors
compliance. The highlight is that all old pending such as unavailability of funds etc. However, by the
annual returns from FY 2017-18 onwards can be filed time they arrange the funds, the time limit for
with a maximum late fee of Rs. 20,000/- (this scheme revocation is lapsed. Therefore, many bona-fide
is valid till 30 June 2023). It is important to note that taxpayers are left without any recourse.
for many old years, the late fee was running into In fact, there were various cases, wherein the courts
lakhs, and hence this is a golden opportunity to get have held that cancellation of registration on non-
on track with this. Similar relief has also been given in
filing of returns does not serve any purpose for the
composition returns (only for GSTR-4 and not for revenue, and it negatively impacts Government
CMP-08). revenue. On the other hand, cancellation also
Additionally, in the Finance Act 2023, the late fee for affects the taxpayer's ease of doing business. Hence,
FY 2022-23 onward for annual return has also been in many such bona-fide cases, the courts had
rationalised (lower late fee of Rs. 50 per day with directed the department to reinstate the
maximum 0.04 % of turnover, for taxpayers having registration. Hence, the Government has
turnover up to Rs. 5 Crores, and Rs. 100 per day with introduced this scheme in the same spirit.
maximum 0.04 % of turnover, for taxpayers having Such persons who have failed to apply for revocation
turnover between Rs. 5 Crs to Rs. 20 Crs. For large or whose revocation application is rejected
taxpayers, the existing late fee of Rs. 200 per day
(including persons who have appealed against the
shall continue as it is. cancellation order or revocation rejection order),
Amnesty scheme is also available to non-filers of whose registration was cancelled on or before 31-
GSTR-10 i.e., final return after cancellation of 12-2022, under section 29(2)(b) or(c)[i.e., on
registration at a nominal late fee of Rs. 1000 if such account of non-filing of returns], may apply for
return is filed between 1-04-2023 to 30-06-2023. revocation up to 30-06-2023after filing all the

54 Every moment is a fresh beginning.