What is Amnesty Scheme for GST?

As per new Finance Minister may consider One time GST Amnesty scheme. The Goods and Services Tax Council may consider One-time amnesty scheme to facilitate exit for ‘nil’ filers and non-filers. Talking about GST non filer numbers there around 25 lack NIL filer of which 2.5 lac approximately. Assesses have never filed GST Return.


As per the law, the person who is registered under GST has to file return anyhow i.e. in any form. Return must be filed by the registered person either monthly (normal supplier) or quarterly (supplier choosing composition scheme). Monthly return must be filed by an ISD (Input Service Distributor) and show the credit distributed details per month. The person who has to collect tax (TCS or Tax Collected at Source) and deduct tax (TDS or Tax Deducted at Source) have to file returns monthly showing the details of collected/deducted and other specified amount. Also, note that a non-resident taxable person has to file the return for the time period on no transaction.

In Amnesty Scheme Late Fee Norms for Defaulters Under GST

Any registered person who did not file the return has to pay the fine as the punishment in the form of late fee. If GSTR 3B is filed late then, the person must pay the late fee of Rs 50 per day i.e. in case of SGST and CGST (in case of any tax debt) Rs 25 per day and Rs 10 in each SGST and CGST (in case of Nil tax debt) i.e. Rs 20 per day subject to a maximum penalty of INR 5,000 from the given due date to the actual date when the returns are finally filed. It is said that the Amnesty scheme may provide relief from such fees.

Under GST, 1.16 crore people are registered as of now including the 64 lakh people who moved from the old system. Before GST reign, VAT/ST was the different pieces for registration in the State, and was low as Rs 1 lakh which could reach up to Rs 20 lakh: the thresholds for Central Excise was ₹1.5 crore and Service Tax was ₹10 lakh. As per the law, all such people were shifted to GST.

Singh said “Traditionally, amnesty schemes have generally resulted in increased compliance and tax revenues. However, the timing of the scheme, immunity from penal consequences and commitment to not initiate any investigations for those who participate in such scheme are some critical aspects on which the success or failure of the scheme hinges”.