Rationalization of late fee imposed u/s 47 of the CGST Act
GST Return Late Fee, To reduce burden of late fee on smaller taxpayers, late fee structure CBIC has been rationalized for prospective tax periods by aligning the upper cap of late fee with tax liability/ turnover of the taxpayers, as follows:
The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 has been capped, per return, as below:
(i) For taxpayers having nil tax liability in GSTR-3Bor nil outward supplies in GSTR-1
For the taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee has been capped at Rs. 500 (R 250/- CGST +R 250/- SGST) per return
(ii) For other taxpayers:
◊ For taxpayers having Annual Aggregate Turnover (AATO) in preceding year up to R 1.5 Cr, late fee has been capped to a maximum of R 2000/- (R 1,000/- CGST + R 1,000/- SGST) per return;
◊ For taxpayers having AATO in preceding year between R 1.5 Cr to R 5 Cr, late fee has been capped to a maximum of R 5,000/- (R 2,500/- CGST + R 2,500/- SGST) per return;
◊ For taxpayers having AATO in preceding year above R 5 Cr, late fee has been capped to a maximum of R 10,000 /- (R 5,000/- CGST + Rs. 5,000/- SGST) per return.
• GST Return Late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers
•The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers has been capped to R 500/- (R 250/- CGST + R 250/- SGST) per return, if tax liability is nil in the return, and R 2,000/- (R 1,000/- CGST + R 1,000/- SGST) per return for others.
•GST Return Late fee payable for delayed furnishing of FORM GSTR-7
•Late fee payable for delayed furnishing of FORM GSTR-7 has been reduced to R 50/- per day (R 25/- CGST + R 25/- SGST) and has been capped to a maximum of R 2,000/- (R 1,000/- CGST + R 1,000/- SGST) per return.
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The above rationalization of GST Return Late Fee will be applicable for prospective tax periods from June 2021 onwards.
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