As per Section 47(1) of the CGST Act, 2017 and respective State GST Act(s) the late fee for filing of returns , including GSTR-4 / GSTR-10, is Rs 100/- per day ( each for CGST and SGST) subject to maximum of Rs 5000/-(each for CGST and SGST). Thus total late fee for delay was Rs 200 per day subject to maximum of Rs 10,000/- for each return.
Section 20 of the IGST Act,2017 provides application of certain provisions of the CGST Act, 2017 or rules made thereunder, shall mutatis mutandis apply, so far as may be, in relation to IGST as they apply in relation to central tax as if they are enacted under the IGST Act. However an exception to this is in regard to late fee as Sec 20(viii) of the IGST Act, 2017 clearly excludes late fee from its ambit. Accordingly there is no separate late fee levied under IGST Act, 2017.
However late fee is applicable under UTGST Act, 2017 as per Section 21(ix), as application of late fee has not been excluded therein. Thus we can conclude that late fee shall be applicable under CGST Act and SGST (supply within State) or UTGST (supply within Union Territory).
In regard to the late fee as above, GST amnesty scheme for waiver/reduction of the late fee was introduced vide Notification No. 76/2018-Central Tax dated 31st December 2018. As per said Notification (as last amended vide Notification No. 19/2021- Central Tax, dated 1st June 2021), registered persons who failed to furnish the return in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from 1st June 2021 to 31st August 2021, the total amount of late fee in excess of Rs 500/- was waived. Thus for each GSTR-3B return the maximum late fee the tax payer has to pay is Rs 1000/- ( Rs 500/- for CGST and Rs 500/- for SGST) as against the normal late fee of a maximum of Rs 10,000/- ( Rs 5000/- for CGST and Rs 5000/- for SGST) , thus entailing a saving of up to Rs 9000/- per return.
Similarly for NIL taxpayers, who failed to furnish the return in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from 1st June 2021 to 31st August 2021 , the total amount of late fee in excess of Rs 250/- was waived. Thus for each NIL GSTR-3B return the maximum late fee the tax payer has to pay is Rs 500/- ( Rs 250/- for CGST and Rs 250/- for SGST) as against the normal late fee of a maximum of Rs 10,000/- ( Rs 5000/- for CGST and Rs 5000/- for SGST) , thus entailing a saving of up to Rs 9500/- per return.
As above in order to avail the benefit of GST amnesty scheme the GSTR-3B return was to be filed by 31st August, 2021.
Now, Notification No. 76/2018-Central Taxes dated 31st December 2018 has further been amended vide Notification No. 33/2021-Central Taxes dated 29th August 2021, so as to extend the benefit of GST Amnesty Scheme to taxpayers who file their GST returns till 30th November 2021.
Thus taxpayers whose GST returns are pending can avail of the golden opportunity and file the pending returns viz GSTR-3B by 30th November 2021 by paying a reduced late fee of a maximum of Rs 1000/- or Rs 500/- per return, as the case may be.
For reading / downloading Notification No. 33/2021-Central Taxes dated 29th August 2021 please click at following link : https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-33-central-tax-english-2021.pdf;jsessionid=73E1D4563B5711F9CB17757726E18A69
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
