Late Fee Reduction Under Gst

For the first time, in the 40

th GST Council meeting held on 12th June 2020, the council recommended late fee reduction/ waiver with respect to delay in filing Form GSTR-3B for the earlier period. The relief will help clear the backlog of returns and impart some working capital relief to the taxpayer in current pandemic situation. Interestingly, after the recommendation, several notifications and press release were done on the matter. The flow of the same, along with the final outcome, is being taken up in the present article.

The flow of notifications and press release done with respect to Form GSTR-3B Late Fee Reduction/ Waiver-

Recommendation done in 40th GST council meeting-

The waiver / reduction of late fee, as recommended, for the delay in filing of Form GSTR-3B for the earlier period is tabulated hereunder-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	July 2017 to January 2020	NIL
Any other case	July 2017 to January 2020	INR 500 per return.

Notification No. 52/2020- Central Tax dated 24th June 2020-

Based on the recommendation of the GST council, the following relief was notified vide notification no. 52/2020-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	July 2017 to January 2020	NIL
Any other case	July 2017 to January 2020	INR 250 per return.

As per the notification, the above relief is available only if the pending returns in Form GSTR-3B is filed between the period 1

st July 2020 to 30th September 2020.

Notification No. 57/2020- Central Tax dated 30th June 2020-

Late fee waiver/ reduction announced vide notification no. 57/2020, in case of the taxpayer having turnover up to INR 5 Crores in the preceding financial year, is-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	February 2020 to July 2020	NIL
Any other case	February 2020 to July 2020	INR 250 per return.

Late fee waiver/ reduction, in case the taxpayer having turnover more than INR 5 Crores in the preceding financial year, is-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	February 2020 to July 2020	NIL
Any other case	February 2020 to July 2020	INR 250 per return.

In both the above cases, relief is available only if the pending returns in Form GSTR-3B are filed by 30

th September 2020.

Press release dated 3rd July 2020-

As per the latest press released by the Central Board of Indirect Taxes and Customs (i.e., CBIC), the maximum late fee payable has now been capped at INR 500 per return.

Final relief

Clubbing up all the above and updating the same with the latest press release in the matter, the late fee waiver/ reduction in case of Form GSTR-3B is as under-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	July 2017 to July 2020	NIL
Any other case	July 2017 to July 2020	INR 500 per return.

Importantly, the above relief of late fee waiver/ reduction is available only if the pending returns are filed by 30

th September 2020.

Back to Learn

Frequently Asked Questions

Common questions about GST Late Fee Reduction for GSTR.

The late fee for filing GSTR-3B returns has been reduced or waived for certain tax periods. If there is no tax liability (Nil return), no late fee is applicable from July 2017 to July 2020. For other cases, the maximum late fee payable is capped at INR 500 per return for the same period.

The late fee reduction/waiver is applicable only if the pending GSTR-3B returns are filed by 30th September 2020. This relief is intended to help taxpayers clear their backlog of returns and provide some working capital relief during the COVID-19 pandemic.

Before the late fee reduction, the late fee for filing GSTR-3B returns was INR 500 per return, irrespective of the taxpayer's turnover or whether it was a Nil return or not.

The late fee reduction/waiver for GSTR-3B was recommended in the 40th GST Council meeting held on 12th June 2020. Subsequently, multiple notifications and press releases were issued by the government to implement the recommendation.

Yes, the late fee reduction/waiver applies to all taxpayers, regardless of their turnover. However, the specific relief may vary based on the taxpayer's turnover and whether it is a Nil return or not.

No, the late fee reduction/waiver is applicable only for the tax periods from July 2017 to July 2020. It does not apply to future tax periods.

Yes, the pending GSTR-3B returns must be filed by 30th September 2020 to avail the late fee reduction/waiver.

Yes, the late fee reduction/waiver is expected to provide some working capital relief to taxpayers who have been affected by the COVID-19 pandemic. It will also help them clear the backlog of pending GSTR-3B returns without incurring high late fees.

The maximum late fee of INR 500 per return was specified in the latest press release by the Central Board of Indirect Taxes and Customs (CBIC) dated 3rd July 2020, capping the late fee payable for any case.

The late fee for Nil returns (where there is no tax liability) has been waived to incentivize and encourage taxpayers to file their GSTR-3B returns on time, even if they have no tax liability for a particular period.