In order to help the Small Businesses and GST tax payers and also as per the decision taken at the 43rd GST Council meeting held on 28th May 2021, a new amnesty scheme for relaxation in return filing, late fees, etc., has been announced.
Period of Applicabilty
The Tax return periods from Jul 2017 to April 2021 is the period of applicability. In view of the same, the taxpayers can make use of the benefits of the amnesty scheme from July 2017 returns till April 2021 returns.
Late fees relaxation
The late fees relaxation is as under :-
| Sl. No | Nature of Return (GSTR 3B) | Relaxation in Late fees |
| 1 | For Nil Returns (No tax liability or ITC Claim for the return periods) | Maximum Late fees is Rs. 500 (SGST 250+CGST 250) per return |
| 2 | In case of Non nil returns | Maximum Late fees is Rs. 1000 (SGST 500_CGST 500) per return. |
Time limit to avail GST Amnesty Scheme
The GSTR 3B shall be filed between 01.06.2021 to 31st August 2021 to avail the benefit of reduced rate of late fees. It means that the pending GSTR 3B returns for the period , July 2017 to Apr 2021 should be filed on or before 31st August 2021
Relaxation w.e.f. 01.06.2021
- The late fees payable for GSTR 3 B & GSTR 1 has also been rationalized from Jun 2021 onwards. The late fees is capped as follows :-
| Taxpayer category | Relaxation in Late Fees |
| 1. Taxpayers having nil tax Liability (Nil Return) | Rs. 500/- (Rs. 250/- each for CGST & SGST) per return |
| 2. For Taxpayers having Tax Liability: | |
| a) For taxpayers having aggregate turnover in preceding FY upto Rs. 1.5 crores | Rs. 2000/- (Rs. 1000/- each for CGST & SGST) per return |
| b) For taxpayers having aggregate turnover in preceding FY between Rs. 1.5 crores to Rs. 5 crores | Rs. 5000/- (Rs. 2500/- each for CGST & SGST) per return |
| c) For taxpayers having aggregate turnover in preceding FY above Rs. 5 crores | Rs. 10000/- (Rs. 5000/- each for CGST & SGST) per return |
- Relaxation in late fees for return filings of GSTR 4
In respect of Composition tax payers, the relaxation in late fees is as under :-
| Taxpayer’s category | Relaxations in Late Fees |
| 1. Taxpayers having nil tax Liability (Nil Return) | Rs. 500/- (Rs. 250/- each for CGST & SGST) per return |
| c) For Other Taxpayers | Rs. 2000/- (Rs. 1000/- each for CGST & SGST) per return |
This will be applicable from FY 2021-22 onwards
- Relaxation for availment of ITC
105% cap on availment of ITC to be applicable on cumulative basis of tax periods Apr.May & June 2021 to be applied in the return GSTR 3B for the tax period Jun 2021.
- Relaxation on Late fees for GSTR 7 filing
There is also a rationalization of late fees on account of delay in furnishing return in GSTR 7 by Tax deductors at source for prospective tax periods (June 2021 onwards)
| Filing Particulars | Relaxations |
| Late Fee payable for delayed furnishing of Return in Form GSTR – 7 | Rs. 50 Per day (Rs. 25/- each CGST & SGST) per return |
| Maximum amount of Late Fee Capped | Rs. 2000/- (Rs. 1000/- each for CGST & SGST) per return |
The relevant Notification No 19/2021 – Central Tax dtd 1st Jun 2021 is provided below
