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  • May 31,2021
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GST Scheme to provide relief to taxpayers regarding the late fee for pending returns from Jul 2017 to Apr 2021:

To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July 2017 to April 2021 has been reduced/waived as under: –

  1. Late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;
  2. Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;

The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.

 

Easing of the late fee imposed under CGST Act:

To reduce the burden of late fee on smaller taxpayers, the upper cap of late fee is being rationalized to align late fee with tax liability/ turnover of the taxpayers, as follows:

  1.  The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be capped, per return, as below:

(i)   For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST)

(ii)  For other taxpayers:

a. For taxpayers having Aggregate Turnover in preceding year upto Rs 1.5 crore, late fee to be capped to a maximum of Rs 2000 (Rs 1000 each for CGST & SGST);

b. For taxpayers having Aggregate Turnover in the preceding year between Rs 1.5 crore to Rs 5 crore, late fee to be capped to a maximum of Rs 5000 (Rs 2500 each for CGST & SGST);

c. For taxpayers having Aggregate Turnover in the preceding year above Rs 5 crores, late fee to be capped to a maximum of Rs 10000 (Rs 5000 each for CGST & SGST).

2. The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return, if tax liability is nil in the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST) per return for others.

3. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.

Above proposals to be made applicable for prospective tax periods.