GST Council likely to launch One-Time Amnesty Scheme for Defaulters

Goods and Services Tax Council is likely to consider a one-time amnesty scheme to facilitate the nil filers or non-filers an exit route under the indirect tax regime.

“Approximately there are 25 lakh ‘nil’ filer assessees while on an average 10 per cent of assessees have never filed returns so far. A scheme for exit will bring relief to the taxpayers as it will bring down their compliance cost and at the same time there will be less pressure on the GST Network,” a tax official told the BusinessLine.

Both the nil filers and the non-filers do not contribute anything but add to the work of tax departments. The tax departments will have to scrutinise the accounts of the nil and non-filers even if they do not pay any taxes or file returns under GST.

The exit route will help the nil and non-filers to reduce their compliance cost as well as it will bring relief to the GST network and the tax officials. The Council is yet to decide the eligibility criteria, date of scheme launch, etc. of the amnesty scheme.

Under GST laws, every registered person is required to file GST returns compulsorily on the monthly or the quarterly basis, whichever is applicable. Some registered persons neglect to file the returns are expected to boost up to file their returns accurately with the introduction of one-time exit route under GST laws.

Under the newly proposed GST return filing system, the council has recommended that the ‘nil’ quarterly return filers can report the same through SMS. It’s better to wait for the council to come up with the scheme and then see its impact on the compliance burden on the assesses or the GST officials.