The Indian government announced a new GST amnesty scheme to come into force on November 1, 2024. That one will again bring relief to taxpayers by allowing the waiver of interest and penalty on outstanding GST dues of eligible taxpayers.

Key Highlights:

1. What the Scheme Covers:

The amnesty scheme targets taxpayers who have pending GST dues and those who are struggling to pay due to financial difficulties or technical problems.

It would cover cases where the payer has not been able to pay the full tax liability, failed to furnish returns, or was owing outstanding demand notices.

2. Waiver of Interest and Penalties:

• Interest: In this scheme, eligible taxpayers are relieved in the form of a waiver of accrued interest on late payment of GST dues.
• Penalties: All kinds of penalties arising out of non-compliance-late filing, non-filing of returns, or even delayed payment of taxes-will also stand waived.
• The extent of the waiver would depend upon the duration of defaulting and eligibility by the taxpayer under the scheme's conditions.

 3. Eligibility Criteria:

• The scheme is for people who could not pay their liabilities in GST due to some reasons like financial difficulty or technical issues.
• It is going to publish extensive guidelines regarding this, ensuring the country is well aware of the eligibility amount and period of the waiver threshold.
• Taxpayers have to clear all their dues during the amnesty period to avail of these benefits.

4. Duration:

• The scheme will be open from 1 November 2024 to a specific end date (to be announced), thereby giving taxpayers the benefit of clearing their dues within the time permitted with reduced or waived penal and interest demands.
• It is a one-time facility to induce compliance and facilitate clearance of GST collection arrears.

5. How to avail the scheme:

• Application to be submitted on the GST portal by the taxpayers indicating their intention to participate in the amnesty scheme.
• Settlement of the original amount of GST liability to be settled upon the waiver of interest and penalties as provided within the scheme.

Objective of the Scheme:

The government aims to ease the business world and increase compliance with GST by reducing interest and penalty burdens. It further expects this amnesty scheme to clear pending dues, thus improving tax collection along with offering much-needed relief for small businesses bogged with outstanding GST dues.

Expected Impact:

The scheme is likely to boost compliance rates, especially among small and medium enterprises (SMEs) that have accumulated dues. The scheme will give enterprises an opportunity to clear their tax records with no additional financial stress, heavy penalties or interest charges.

Further details and specific guidelines regarding the scheme, including exact dates, eligibility, and procedures, will be published on the GST portal. Taxpayers should keep up to date so as to take full benefit of this amnesty scheme.