CA Rajeev Damani is the past chairman of the Nagpur branch of ICAI. He was part of WIRC. The GST law had pre-litigation, and it produces schemes and compliances. The chartered accountants deal with GST law and advice the clients. CA Rajeev Damani says that chartered accountants have to advise the clients in the right direction. Chartered accountants should understand the different schemes in GST. CA Trupti Bhattad conducted the seminar gathering professional minds. CA Swarropa Wasalwar is the treasurer of WIRC. He presented the vote of thanks. CA Mahindra Jain explained the intricacies of the Maharashtra amnesty scheme. The blog highlights the tax collection challenges in Maharashtra and the amnesty scheme.
What is the amnesty scheme?
On 18th February 2023, in the 49th GST council meeting the central government introduced the Amnesty scheme. The scheme consisted of three Amnesty schemes. The first amnesty scheme deals with GSTR-4, GSTR-9, and GSTR number ten. The 49th meeting was in New Delhi. Union minister Smt. Nirmala Sitharaman hosted the GST council meeting as a chairperson. The GST council has decided to clear the compensation cess collection.
The time given for the revocation of registration gets an extension of 90 days from 30 days. The commissioner further extends the period to 180 days. The council requested that companies with cancellation of registration can apply for revocation within the specified time limit. The amnesty scheme is to relieve the taxpayers from the pending payment. In amnesty scheme two, GST registration has been targeted. The taxpayers are now allowed to file for the renovation. Amnesty scheme three is the judgment in past cases. The amnesty scheme would be executed first of April and 30 of June, 2023. Taxpayers can make online or offline payments. The amnesty scheme is time specific scheme. It is available for a particular period only. The scheme makes the taxpayers voluntarily disclose their tax payments. The taxpayers make the payment through cards, cash and DD.
The changes in the 2023 Amnesty scheme:
- The corrections to the GSTR-3B can be made in November month. It was previously September month.
- The GSTR-4 filed between April 2023 and June 2023 gets a late fee of five hundred only. Any amount more than five hundred is waived off.
- The late fee for the financial year 2022 to 2023 to the GSTR-9 dealers is as follows:
- For a turnover of five crore the late fee is fifty.
- For turnover between five crores to twenty crores, the late fee is a hundred.
- For a turnover of over twenty crores, the late fee is two hundred only.
- The non-filers with the GSTR-10 form get a late fee of 1000 alone if they pay in 2023.
- The taxpayer with GSTR- one, 3B and ten file tax in 2023, the details of due tax, late fee, and interest rate should be provided.
- The revocation of GST registration is processed only after paying late fees, due tax, and interest.
- The due date extension for orders under section 73 is December 2023 for the financial year 2017 to 18, March 2024 for the financial year 2018 to 2019, and June 2024 for the financial year 2019 to 2020.
Benefits of the amnesty scheme:
Several amnesty schemes are introduced in the Maharashtra state. It introduced a waiver option for more than seventy-five per cent of the taxpayers. Earlier, the Pune municipal corporation gave a seventy-five percentage of waiver option to the tax defaulters. The benefit of the amnesty scheme is illustrated below:
- Amnesty scheme helps to increase the revenue flow.
- The taxpayers pay the due amount in a short period. The tax collected from these people is used for development and maintenance.
- The taxpayers do not refrain from the old payments as the charges are heavy. The reduction in the late fee led to more collection of the tax money.
- Customers who do business with vendors have GST registration. The cancellation of GST registration is a heavy loss to the business. The GST Amnesty scheme smoothens the problems of small business owners.
Chartered accountants help to pay arrears of tax:
Chartered accountants guide their clients in tax planning. Tax saving is possible if there is updated knowledge about the compliances. Small business owners require expert guidance to avoid tax litigation. Cash flow and revenue generation are crucial parts of small business. Small problems bother the small business. Tax authorities send notifications for the tax payment. A good chartered accountant knows the government schemes, deductions, calculations and compliance changes. The knowledge of GST is the core part of a chartered accountancy profession. The former chairman of the Nagpur branch advised the right thing to the students. Students should follow the advice of the experts and contribute to the nation. Tax payment and tax collection have a direct impact on the business climate in a country.
Chartered accountants contribute to rapid economic growth. They understand the financial and economic challenges in the country. CA has involvement in all industries. Their knowledge is vast. The sharpening knowledge of the changing laws of the country makes their notable personalities. Chartered accountants should understand the fundamental law and the changing law in the country.