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What is GST Amnesty Scheme 2021?


Businesses that fail to file summary returns and pay monthly GST (Goods and Services Tax) would be unable to file GSTR-1 sales returns for the next month as of January 1 next year. The GST Council decided on a raft of steps to streamline compliance at its September 17 meeting, including obligatory Aadhaar authentication for corporations filing refund claims.

What is GST Amnesty Scheme 2021?

What is GST Amnesty Scheme 2021?

Many taxpayers failed to file their returns on time, resulting in a significant amount of late fines. This late fee is calculated on a month-by-month basis for each return. Even for a tiny company, it may cost lakhs of rupees. The amnesty scheme 2021 is designed to waive late costs associated with the late filing of these returns.

The GST amnesty scheme 2021 is a scheme that waives late costs for returns that have been filed late. There are two main returns: GSTR 1 and GSTR 3b. Late costs apply if the returns are not filed on time. Late fees might be charged even if there is no turnover.

GST Amnesty Scheme: What is the fee?

The GST amnesty system considers GSTR 3b for a late charge relief. Any registered individual who fails to file the return is subject to a fine in the form of a late charge. If GSTR 3B is filed late, the person must pay a late fee of Rs 50 per day, i.e. Rs 25 in case of SGST and CGST and Rs 10 in each SGST and CGST, in case of Nil tax debt i.e. Rs 20 per day from the given due date to the actual date when the returns are finally filed, up to a maximum penalty of Rs 5,000. According to reports, the Amnesty program may provide relief from such expenses.

While businesses must file GSTR-1 by the 11th day of the next month, GSTR-3B, which is used to pay taxes, is filed in a staggered fashion between the 20th and 24th day of the following month.


The deadline for filing FORM GSTR-3B and FORM GSTR-1/ IFF utilizing an electronic verification code (EVC) has been extended to October 31, 2021.

Taxpayer's categoryRelaxations in Late Fees
1. Taxpayers having nil tax Liability (Nil Return)Rs. 500/- Rs. 250/- each for CGST & SGST per return
For Taxpayers having Tax Liability:
a) For taxpayers having aggregate turnover in preceding FY up to Rs. 1.5 croresRs. 2000/- CGST and SGST both cost Rs. 1000/- each return
b) For taxpayers having aggregate turnover in preceding FY between Rs. 1.5 crores to Rs. 5 croresRs. 5000/- CGST & SGST each Rs. 2500/- per return
c) For taxpayers having aggregate turnover in preceding FY above Rs. 5 croresRs. 10000/- Rs. 5000/- for CGST and SGST, respectively.

Aadhaar Authentication

The announcement also stated that if a business does not give an Aadhaar number, GST registration will only be approved after a physical inspection of the business location.

Businesses will now be required to link their GST registration with biometric Aadhaar in order to claim tax refunds and apply for revocation or cancellation of registration, according to the Council.

GST refunds would be distributed in the bank account that is linked to the same PAN that was used to seek GST registration during the Council's 45th meeting, which was attended by central and state finance ministers.

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