The Indian government came with good news, Now businesses can apply for revocation of their cancelled GST registration Till June 30. Many business owners are penalized for not filing their Tax returns on time. And their GST registration got cancelled. Some businesses missed the last date to apply for revocation. To give these businesses another opportunity. The finance ministry Made serval amendments to the central GST act. If your GST registration was cancelled on 31, December or before. You can now apply till the extended Date of June 30, 2023.
But remember, the application for revocation cannot be submitted until all required returns have been submitted and paid for, including any tax obligations related to those returns and any interest, penalty, or late fees that may be owed. Also, the finance ministry clearly stated that this is a final extension. And no other time extensions are available in near future. But considering the previous time limit, in which Tax Payers only have 30 days to apply for their GST Registration cancellation revocation. This is a big relief for taxpayers.
A GST council including finance ministers of the centres and the states had previously advocated giving amnesty to GST taxpayers whose registration had been terminated due to failure to file returns. By allowing them to submit requests for revocation within a certain time frame. Also, the finance ministry decided to charge a late fee of 1000 Rupees for the registered individuals who miss the deadline for submitting their final return in Form GSTR-10, And they are willing to pay by June 30, 2023.
Now you must be thinking what is GSTR-10, So When a taxpayer decides to revoke their GST registration, they must file a last return known as the GSTR-10. This return must be filed legally within three months of choosing to cancel the registration.
The government also reduce late fees for MSME taxpayers, which have up to 20 crore rs turnover, In case they delayed filing their Form GSTR-9. A maximum late fee of Rs 50 per day, or 0.04 per cent of his turnover, will be assessed to those having an aggregate turnover of up to Rs 5 crore in the relevant financial year. And a maximum late fee of Rs 100 per day, or 0.04 per cent of his turnover, will be charged to registered persons with an aggregate turnover of between Rs 5 crore and Rs 20 crore in the relevant financial year.
Rajat Mohan, the senior partner at AMRG & Associates, claimed that in an effort to get taxpayers to comply and file overdue GST returns by June 30, 2023, the government has enacted a number of amnesty programs.
Important: What is Amnesty Scheme for GST Returns Non & NIL Filers?
The government provided a fair amnesty to GST payers. Taxpayers with cancelled GSTIN, and Taxpayers who have not filed Returns especially benefited from the government’s decision. Also, the main benefit of these amnesty schemes is to improve tax collection by the government by bringing defaulters into the mainstream.