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Proposed GST Amnesty Scheme- GST council meeting

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49th GST council meeting – Proposed GST Amnesty Scheme :

Goods and Services Council held its 49th Goods and Services Council Meeting at New Delhi on 18th Feb 2023 which was chaired by Nirmala Sitharaman -Finance Minister.

What was the agenda of the 49th GST council meeting?

Goods and Services Council Meeting held on 18th February 2023 recommended various Goods and Services amnesty schemes & certain changes in tax rates along with rationalization in Late Fees for Annual returns were also proposed.

What are some of the major recommendations of the meeting?

The following are some of the Goods and Services Council recommendations of the meeting:

  • Council has adopted the report of the Group of Ministers for setting up of Goods and Services Appellate Tribunal.
  • All the Goods and Services Compensation Dues will be cleared.
  • Special revenue leakage measures are to be introduced in the case of certain commodities such as pan masala, gutkha, and chewing tobacco.
  • Goods and Services Council has proposed a NIL rate of tax on “Loose Rab” and a 5% of tax on “Packaged Rab” which was taxed at 18% earlier.
  • The Goods and Services Council has proposed to decrease the rate of Tax on Pencil Sharpener from 18% to 12%.
  • The Goods and Services Council has proposed to increase the time limit for filing an application for revocation of cancellation of registration from 30 Days to 90 Days.

What are the different slabs proposed for the Late Fees of Goods and Services Annual Return?

Rationalization of Late Fees has been made in respect of Goods and Services Annual Return and from FY 2022-23 the below Late Fees shall be applicable as below:

  1. If Turnover is up to 5 Crore – Late Fees of Rs 50 (Rs 25 CGST and Rs 25 SGST) per day shall be applicable for a maximum up to 0.04 % of turnover.
  2. If the Turnover is between 5 Crore and 20 Crore – Late Fees of Rs 100 (Rs 50 CGST and Rs 50 SGST) per day shall be applicable for maximum upto 0.04 % of turnover.
  3. In case Turnover is above 20 Crore – Late Fees of Rs 200 (Rs 100 CGST and Rs 100 SGST) per day shall be applicable maximum upto 0.5 % of turnover.

What are the various Goods and Services amnesty schemes proposed in the 49th Goods and Services council meeting?

The Below are the Goods and Services Amnesty scheme proposed in the 49th Goods and Services council meeting:

  1. Amnesty scheme has been proposed for the cases where the application for revocation has not been made within the prescribed period earlier.
  2. The Amnesty scheme has also been introduced for cases where the assessment order has been issued but the return has not been filed within 30 days of the order.
  3. This amnesty scheme will be available if the return is filed along with Interest & Late Fees for which the Assessment order is issued irrespective of the fact whether the appeal has been filed or decided.
  4. Amnesty scheme has been introduced in respect of filing pending returns in Form GSTR-9, GSTR-4, & GSTR-10 by way of conditional waiver/reduction of Late Fees.

What should one learn from this?

  • The detailed press release for the same can be accessed from the Central Board of Indirect Taxes & Customs website.
  • Main highlight of the Council Meeting was the introduction of different Amnesty schemes and the rationalization of Late Fees for Annual Return.
  • This is just the recommendations of the council let’s wait for the relevant notifications/ circulars/law amendments to have further clarity on the above recommendations.

 

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