Business owners, whose GST registrations have been canceled for non-filing of returns can now apply for revocation by June 30 | Representative photo
The government has allowed businesses, whose GST registrations have been canceled for non-filing of returns, to apply for revocation of the cancellation by June 30, after paying taxes, interest and penalties.
The Ministry of Finance has made amendments to the Central GST law stating that businesses whose registration was canceled on or before December 31, 2022, and failed to apply for revocation of the cancellation within the specified period can do so before June 30, 2023.
However, the application for revocation shall be filed only after furnishing the returns due up to the effective date of cancellation of registration and after payment of any amount due as tax, in terms of such returns, including any amount payable for interest, fines and late fees.
No further extension of time period for filing application for revocation of cancellation of registration shall be available in such cases, according to the finance ministry notification.
This will serve as a relief for taxpayers as according to law, Goods and Services Tax (GST) payers have only 30 days time to apply for revocation of the order of cancellation of registration.
The GST council, comprising the Finance Ministers of the center and states, had in its previous meeting in February, recommended that for such GST taxpayers whose registration be canceled for non-filing of returns will be granted amnesty by allowing those persons to file an application for revocation within a specified date.
Also, the finance ministry has capped the late fee at ₹1,000 for registered persons who fail to file the final return in Form GSTR-10 by the due date, provided they file the said returns by June 30, 2023.
GSTR-10 is a final return filed by taxpayers who have decided to cancel their GST registration. By law, this return must be filed within three months of opting for cancellation of registration.
Through another notification, the government has also rationalized the late fee for delayed filing of annual return in Form GSTR-9 for FY 2022-23 onwards, for MSME taxpayers with a turnover of up to ₹20 crore .
Those with an aggregate turnover of up to ₹5 crore in the said financial year will be charged a late fee of ₹50 per day, subject to a maximum amount calculated at 0.04 per cent of his turnover.
Registered persons having an aggregate turnover of between ₹5 crore to ₹20 crore in the said financial year will be liable to pay a late fee of ₹100 per day, subject to a maximum amount calculated at 0.04 per cent of his turnover.
AMRG & Associates Senior Partner Rajat Mohan said the government has come up with several amnesty schemes for taxpayers encouraging them to comply and file pending GST returns by June 30, 2023.
“Fair amnesty schemes have been given to the composition of taxpayers, who have not filed final returns, and taxpayers whose GSTN has been cancelled. These amnesty schemes will bring tax defaulters into the mainstream and boost tax collections in the long run,” said Mr. Mohan.
