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New Amnesty Scheme under GST to provide relief on pending return penalties

  • Jun 8, 2021 | Manjula Muthukrishnan

  • Amnesty refers to a pardon extended by a Government to a specific group of persons. In this case, the Centre has coined the term ‘Amnesty Scheme’ under GST to encourage taxpayers with returns pending since 2017 to file their returns.
  • This scheme will involve the capping of late fees at a specific amount for specific categories of taxpayers.
  • The scheme will be available only from June 1st, 2021 to August 31st, 2021.

The GST Council announced several relief measures on Goods and Services and for taxpayers in the 43rd GST Council Meet. We have covered the highlights of the meeting in this article. One of the relief measures that caught our attention was the Amnesty Scheme under GST. Here’s what you must know about the Amnesty Scheme. 

In a bid to provide relief to taxpayers with long pending returns, Finance Minister, Nirmala Sitharaman has announced the capping of penalties for specific categories of taxpayers. The late fee for not furnishing GSTR3B for the tax periods between July 2017 to April 2021 has been reduced and will benefit around 89% of taxpayers. 

Under the Amnesty Scheme, the Council has provided relief to taxpayers with pending GST returns. This scheme will be valid between June 1st, 2021 and August 31st, 2021. 

Taxpayers with NIL liability
The late fee is now capped at ₹500 (₹250 each for CGST and SGST) for each return for taxpayers with NIL tax liability between July 2017 to April 2021. 

Taxpayers with liabilities
The late fee is now capped at ₹1000 (₹500 each for CGST and SGST) per return for taxpayers with tax liabilities between July 2017 to April 2021. 

The Amnesty Scheme under GST is announced in a bid to encourage taxpayers with returns pending since 2017. Some taxpayers haven’t filed their returns due to NIL liabilities but have accumulated quarterly amounts in penalties for non furnishing of GST returns. 


Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Manjula Muthukrishnan
Avalara Author Manjula Muthukrishnan
Manjula is the Managing Director of India operations at Avalara. Her role involves overseeing strategic operations in India with a special focus on strengthening the company's end to-end tax automation offerings in the market by enabling Indian customers navigate the complexities of the local indirect tax system - Goods and Services Tax. Prior to joining Avalara, she served leadership roles at renowned organizations like Infosys, HSBC and Socion Advisors. Manjula has been recognized by various internal and external forums for her contributions in the area of Corporate Social Responsibility.

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