May 18, 2023

Avoid late fees and penalties with GST Amnesty Scheme

On May 16, 2023,The GST Amnesty Scheme was introduced once again by the government to provide relief to taxpayers who missed filing GSTR-10 for the previous tax periods. Under this Scheme Tax Payers have the opportunity to file their pending GSTR-10 final returns before 30th June 2023. 

This scheme offers a significant opportunity for the businesses to rectify the past non compliance and avail various benefits like relief from late fees, hefty penalties and legal consequences. 

GSTR-10 Final return 

GSTR-10 is the Final Return that must be filed by taxpayers who have chosen to cancel their GST registration. It must be filed within three months of the date of cancellation or the date of the cancellation order. 

GSTR-10 plays a crucial role by facilitating the proper closure of GST registration, ITC, and tax liabilities of the businesses. 

Benefits of GST Amnesty Scheme: 

The GST amnesty scheme provides certain benefits to taxpayers who file their pending GSTR-10 Final Returns within the specified timeline. Here are the key features of the scheme:

Benefits to the taxpayers who file their pending GSTR-10 

1. Waiver of late fees

For taxpayers who file their GSTR-10 Final Returns before the deadline, the scheme waives all late fees. This provides significant relief to businesses that may have incurred significant late fee liabilities as a result of noncompliance. The Council has announced a waiver of late fees in excess of Rs. 500 for registered persons who fail to file the final return in FORM GSTR-10 by the due date but do so between April 1st and June 30th, 2023. (Notification No. 08/2023-Central Tax, March 31, 2023)

2. Reinstatement of compliance status 

Filing the GSTR-10 Final Return during the amnesty period allows businesses to regain compliance status. It demonstrates the taxpayer's willingness to correct past noncompliance and helps to maintain a good reputation in the market.

Eligibility for the GST Amnesty Scheme

Taxpayers who have not filed their GSTR-10 Final Returns before the due date are eligible for the scheme. Additionally, taxpayers who have filed their GSTR-10 Final Returns but have not paid the tax due are also eligible.

Importance of Filing GSTR-10 Final Return: 

Filing the GSTR-10 Final Return within the stipulated timeframe is crucial for businesses for several reasons:

1. Avoiding Legal Consequences: Noncompliance with GST regulations can result in legal consequences such as fines and legal proceedings. Businesses can mitigate these risks and ensure compliance with tax laws by filing the GSTR-10 Final Return.

2. Closure of GST Liability:The GSTR-10 Final Return enables businesses to settle any outstanding GST liabilities and complete their tax obligations. It gives businesses that have opted for GST cancellation a clean slate and ensures a smooth transition out of the GST regime..

3. Compliance Records: Maintaining a clean compliance record is critical for businesses because it boosts their credibility and reputation. Businesses can demonstrate their commitment to compliance and build trust with stakeholders by filing the GSTR-10 Final Return during the amnesty period.


In conclusion, the GST amnesty scheme lets businesses fix past noncompliance and follow GST regulations. Businesses can get benefits such as a waiver of late fees, avoidance of penalties, and reinstatement of compliance status by filing their pending GSTR-10 Final Returns before the deadline of June 30, 2023. Taking advantage of this amnesty scheme can help businesses protect their reputation, foster a compliance culture, and contribute to an efficient indirect tax system. Therefore, businesses should act quickly, review their records, seek professional assistance if necessary, and file their GSTR-10 Final Returns within the specified timeframe.


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