Deadline for the Amnesty Scheme extended


  • The government announced the Amnesty scheme under the GST to encourage the filing of returns pending since 2017.
  • The finance minister, Nirmala Sitharaman, had announced that the scheme would begin on 1st June 2021. The last date of availing of relief under this scheme was 31st August 2021.
  • On 29th August, the Ministry of Finance extended the deadline of this scheme to 30th November.
  • Under this scheme, specified taxpayers can avail the relief of the capping of late fees up to a certain amount till 30th November 2021.

This is good news for everyone willing to but missed their chance to file pending GST returns. The deadline of the GST Amnesty Scheme is extended, and here is why you should clear off all the pending returns before 30th November 2021.

In the 43rd meeting by the GST council, they declared the ‘GST Amnesty scheme for defaulters of returns. Before that, heavy penalties and late fees burdened defaulters. In addition, some taxpayers had not filed NIL Returns, and the late fees that had accrued for them were more. For many taxpayers, the penalties and late fees were the reason for keeping the returns pending.

The Amnesty scheme became active on 1st June 2021 and was to end on 31st August 2021. However, on 29th August 2021, the Ministry of Finance declared that the scheme is extended by another three months. Thus, the newly announced deadline for the scheme is 30th November 2021.

Amnesty means pardon against a political offence. The government launched this scheme to give the defaulters another opportunity for filing pending returns. In addition, it reduces the late fees for not filing GSTR-3B by giving it an upper limit. This feature is commonly known as capping of late fees. As foreseen, the scheme might benefit 89% of taxpayers.  

Under this scheme-

  • The late fees are limited/ capped up to Rs. 500 for each return from July 2017 to April 2021 with NIL tax liabilities.
  • The late fees are limited to Rs 1000 for each return from July 2017 to April 2021 with tax liability. (Rs 500 CGST and Rs 500 SGST)

Avalara helps businesses of all sizes to automate their tax compliance and adapt healthy tax practices. Our GST suite has helped many. So, if you are tired of the tax complexities, automate with us and relax. Click here to know more.

We keep posting updates regarding changing global and local tax regulations. Also, please read our blog about the recent scheme RoDTEP that the government announced to encourage exports.

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