The CBIC in its Press Note dated 03.07.2020 on capping of late fee at Rs 500/- per GSTR-3B return has said that in a major relief to the GST taxpayers, the government has decided to cap the maximum late fee for Form GSTR-3B at Rs. 500/- (five hundred only) per return for the tax period July 2017 to July 2020 subject to the condition that such GSTR -3B returns being filed before 30th September 2020. A notification has been issued to provide for nil late fees if there is no tax liability; and, if there is any tax liability then a maximum late fee of Rs. 500 per return would be applicable to such GSTR-3B returns filed up to 30th September 2020.
Various representations were received to give further relief in a late fee charged for the tax periods of May 2020 to July 2020, in addition to earlier provided relief for February 2020 to April 2020 and relief provided for cleaning up past pendency of returns from July 2017 to January 2020. Also, a uniform late fee is simpler in design and easier to implement on an automated common portal. So, the late fee is capped at Rs. 500/- only per return, if filed before 30th September 2020.
It is pertinent to mention here that capping of late fee to Rs 500/- per GSTR-3B is applicable where said return are not NIL returns as in case of Nil returns, zero late fee is applicable for entire period since inception of GST regime viz 1st July,2020.
The relevant Notification in regard to above capping is Notification No. 76/2018-Central Tax dated 31.12.2018 as amended by Notification No. 52/2020-Central Tax dated 24.06.2020 and further by Notification No. 57/2020- Central Tax dated 30.06.2020.
For detailed discussion in regard to late fee along with Illustrations our article Illustrated Guide to late fee after incorporating the Notification No. 57/2020-Central Tax dated 30th June,2020 may be referred to.
For ready reference of our readers the press note is as under:
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