Late Fee Reduction on Filing Form GSTR-3B 

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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:

notfctn-19-central-tax-english-2021

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Renu is experience content writer specialised in compliances and company rules.