Late Fee Reduction on Filing Form GSTR-3B

In line with the decisions taken in the

43rd GST Council meeting held on 28.05.2021, CBIC has announced the Late Fee Reduction on Filing Form GSTR-3B vide a Notification 19/2021 Central Tax Dated 01.06.2021. The Government has provided relief by way of reduction in the interest rate and waiver of late fees for delay in filing of GSTR-3B for the period of March 2021, April 2021, and May 2021. The relief will help clear the backlog of returns and impart some working capital relief to the taxpayer in the current pandemic situation.

Synopsis of Notification

The government has waived the late fee on delayed filing of monthly return

GSTR-3B and tax payment for March, April and May 2021 also cut interest rate for late filers.

Taxpayers with a turnover of over Rs 5 crore have been given 15 days extra time to file monthly summary return GSTR-3B and pay taxes without paying any late fees. They would be required to pay a lower 9 percent for these 15 days, after which the rate would be 18 percent.
While those with a turnover up to Rs 5 crore in the preceding financial year have 30 days more time from their original due date for filing 3B returns for March and April, with a late fee waiver. The interest rate would be 'Nil' for the first 15 days, post which it would be 9 percent. After 30 days, an 18 percent interest would be levied.

Period for which Late Fee Waived

CBIC has granted a partial waiver from the late fee payable for the delay in filing

GSTR 3 B returns for March 2021, April 2021, and May 2021:

Sl.No	Category of taxpayers	Tax period	Period for which late fee waived
1	Taxpayers having an aggregate turnover of more than rupees 5 Crores in the preceding financial year	March 2021, April 2021, and May 2021	15 days from the due date of furnishing return
2	Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year - who opted to file monthly returns
April 2021	45 days from the due date of furnishing return
May 2021	30 days from the due date of furnishing return
3	Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year - who opted to file quarterly returns	January-March, 2021	60 days from the due date of furnishing return

Reduced Late Fee

In addition, the following waiver from the late fee is also granted to taxpayers.

Any person who has not filed his GSTR 3B return for any tax period during July 2017 to April 2021, if they file the returns between 01.06.2021 to 31.08.2021, the late fee shall be limited to Rs.500 per return (another Rs.500 under SGST).
If the tax liability for the above period, for which they have not filed GSTR 3B earlier and now filing is NIL, then the late fee shall be further reduced to Rs.250 per return (another Rs.250 under SGST).

The late fee for the registered persons who have failed to furnish the return in FORM GSTR-3B, for the months /quarter of July 2017 to April 2021

, by the due date is tabulated here for reference:

Sl.No	Return in FORM GSTR-3B for the month/ quarter of	Amount of Central & State/UT tax payable in the return	If Return furnished between	Late fee payable waived more than (Rs)
1	July 2017 to April 2021	NIL	1st June 2021 and 31st August 2021	500
2	July 2017 to April 2021	Not NIL	1st June 2021 and 31st August 2021	100

Reduced Late Fee for the tax period of June 2021 onwards

The late fee payable for the delay in filing GSTR 3B for June 2021 onwards or quarterly returns from the quarter ending June 2021 onwards shall be reduced as below.

Sl.No	Category of taxpayers
1	Taxpayers, where the tax payable for the tax period is NIL	Rs.250
2	Taxpayers having an aggregate turnover of below Rs.1.5 Crores in the preceding financial year (other than those covered under 1 above)	Rs.1000
3	Taxpayers having an aggregate turnover of above Rs.1.5 Crores but below Rs.5 crores in the preceding financial year (other than those covered under 1 above)	Rs.2500

Other Announcements

Since nothing has been mentioned about those taxpayers, whose aggregate turnover is more than Rs. 5 crores, the late fee for them shall be Rs.25 per day of delay, subject to the maximum amount specified under Section 47 of CGST Act i.e. Rs.5,000. It may be noted that a similar late fee under SGST would also apply in all the above cases. The official notification pertaining to Late Fee Reduction on Filing Form GSTR-3B is attached here for reference:

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Frequently Asked Questions

Common questions about GSTR-3B Late Fee Reduction.

The purpose of this notification is to provide relief to taxpayers by reducing the late fees and interest rates for delayed filing of GSTR-3B returns for the months of March, April, and May 2021. This relief aims to help clear the backlog of returns and provide some working capital relief to taxpayers during the COVID-19 pandemic situation.

The late fee waiver is applicable to taxpayers with an aggregate turnover of more than Rs. 5 crores in the preceding financial year for a period of 15 days from the due date of filing GSTR-3B returns for March, April, and May 2021. Taxpayers with an aggregate turnover of up to Rs. 5 crores in the preceding financial year are eligible for a late fee waiver for a longer period, depending on their filing frequency (monthly or quarterly).

For taxpayers with a turnover of over Rs. 5 crores, the interest rate for late filing within 15 days from the due date is reduced to 9%, and after that, it is 18%. For taxpayers with a turnover up to Rs. 5 crores, the interest rate is 'Nil' for the first 15 days, 9% for the next 15 days, and 18% thereafter.

Yes, the notification provides relief for taxpayers who have not filed GSTR-3B returns for the period from July 2017 to April 2021. If they file these returns between June 1, 2021, and August 31, 2021, the late fee shall be limited to Rs. 500 per return (Rs. 250 if the tax liability is NIL).

The late fee payable for the delay in filing GSTR-3B for June 2021 onwards or quarterly returns from the quarter ending June 2021 onwards has been reduced. The reduced late fee ranges from Rs. 250 to Rs. 2,500, depending on the taxpayer's turnover and whether the tax payable is NIL or not.

This notification helps taxpayers by providing relief in the form of reduced late fees and interest rates for delayed filing of GSTR-3B returns. It acknowledges the challenges faced by taxpayers during the COVID-19 pandemic and aims to ease their compliance burden and provide some working capital relief.

The notification does not mention any specific change in the late fee for taxpayers with an aggregate turnover of more than Rs. 5 crores. For these taxpayers, the late fee shall be Rs. 25 per day of delay, subject to the maximum amount specified under Section 47 of the CGST Act (i.e., Rs. 5,000).

Yes, the late fees mentioned in the notification are applicable under both CGST and SGST. A similar late fee under SGST would also apply in addition to the late fee under CGST.

The late fee reduction and waiver mentioned in the notification are specific to the tax periods of March 2021, April 2021, and May 2021, as well as for the pending returns from July 2017 to April 2021 (if filed between June 1, 2021, and August 31, 2021). The reduced late fees for the tax period of June 2021 onwards are also mentioned separately.

The official notification pertaining to the Late Fee Reduction on Filing Form GSTR-3B is attached to the article for reference. The notification number is 19/2021 Central Tax, dated June 1, 2021.