Late Fee Reduction under GST
Late Fee Reduction under GST
For the first time, in the 40th 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 1st 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 30th 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 30th September 2020.
Post by poonamgandhi
CA Poonam Gandhi is a Chartered Accountant and a Lawyer. With a wide practice experience and deep understanding of different laws and taxes, she has been an independent professional writer in the field of taxation, finance and laws.
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