The Maharashtra Government has introduced an Amnesty Scheme under the Goods and Services Tax (GST) regime, waiving INR 27,000 crore in penalties and interest for liabilities accrued between FY 2017 and 2020. Announced by Deputy Chief Minister Ajit Pawar in the state legislature, the scheme allows businesses and taxpayers to settle their dues without additional charges. The deadline to avail of this scheme is March 31, 2025.
Key Highlights of the Maharashtra GST Amnesty Scheme:
1. Scope of Waiver:
- The total disputed amount under GST in Maharashtra is approximately INR 54,000 crore.
- Out of this, INR 27,000 crore relates to core tax, while the other half comprises penalties and interest.
2. Expected Revenue Collection:
- The state anticipates recovering 20% of the disputed amount, translating to INR 5,500–6,000 crore.
- Of this, approximately INR 2,700–3,000 crore will go to the state treasury, with the remainder going to the Central Government.
3. Target Audience:
- Over 1.14 lakh taxpayers with pending disputes are expected to benefit.
4. Benefits for Businesses:
- Financial relief and an opportunity to resolve pending disputes.
- Encourages compliance and reduces the financial burden on businesses.
Awareness Campaigns for the Amnesty Scheme:
The government is conducting awareness campaigns targeting:
- Taxpayers
- Legal professionals
- Chartered accountants
- The general public
These initiatives aim to ensure maximum participation and compliance with the scheme’s provisions.
What is the Amnesty Scheme for GST?
The Amnesty Scheme provides leniency to non-filers and nil filers of GST returns who have not complied with GST filing requirements. A senior tax official highlighted that there are approximately 25 lakh ‘nil’ filer assessees, and about 10% of registered taxpayers have never filed returns. These non-filers contribute to additional workload on the tax system without any tax compliance. The scheme aims to reduce compliance costs and ease the pressure on the GST Network by encouraging such taxpayers to come forward and resolve their pending dues without fear of penal consequences.
As per the GST law, all registered persons are required to file GST returns, whether monthly or quarterly. The scheme helps ease compliance burdens, offering taxpayers a one-time opportunity to settle their dues at reduced costs.
Latest Updates on Amnesty Schemes:
1. CBIC Amnesty for Missed Appeal Filing Deadlines:
The CBIC recently extended the appeal filing deadline until January 2024 for orders issued up to March 2023, with a pre-deposit of 12.5% of the tax. This includes non-filers of Form GSTR-4, GSTR-9, and GSTR-10, as well as cases of registration cancellations.
2. Kerala Amnesty Scheme 2020:
The Kerala government introduced a similar scheme to clear dues from pre-GST laws such as VAT, CST, and other state-specific taxes. Assessees who had previously participated but failed to clear dues could apply again, with immunity from penalties. The deadline for this scheme was July 31, 2020.
3. Meghalaya GST Amnesty Scheme:
The Meghalaya cabinet approved a scheme offering 30% waiver on outstanding pre-GST dues. This initiative aimed to provide relief to taxpayers while boosting government revenue.
4. KPMG Analysis:
Harpreet Singh, Partner at KPMG, noted that the initial phases of GST led to compliance issues due to unclear laws and technical glitches. Amnesty schemes like these help genuine non-filers address compliance issues without penalties, boosting overall tax compliance.
Implications for GST Compliance in India:
The introduction of amnesty schemes has historically resulted in increased tax compliance and revenue. However, the success of such schemes largely depends on timely implementation, transparency, and ensuring participating taxpayers are shielded from punitive actions. The Maharashtra GST Amnesty Scheme is expected to encourage non-compliant taxpayers to resolve their dues while contributing to increased revenue for both state and central governments.
Final Call for Taxpayers:
The Maharashtra government urges taxpayers to take full advantage of the GST Amnesty Scheme before the March 31, 2025 deadline. This one-time opportunity provides significant savings and a chance to clear pending dues without incurring penalties.
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Published on: December 20, 2024