GST Late Fee: A Complete Case Digest

Taxpayers who do not file their GST returns by the designated due date incur penalties in the form of late fees and interest charges. The GST system imposes these penalties to promote punctual filing and facilitate efficient tax administration. Late fees are assessed as a fixed amount for each day the return is overdue. The exact fee varies depending on the type of GST return being filed and whether the return is completely devoid of transactions for the period ( nil returns ). The penalty for late filing of GST returns is typically a late fee of Rs. 50 per day for taxable returns and Rs. 20 per day for nil returns. Additionally, interest may be charged on the unpaid tax due at a rate generally around 18% per annum, calculated from the due date of the payment until the actual payment date. CBIC waives Late Fee for GST Returns for Three Months The Central Board of Indirect Taxes and Customs ( CBIC ) has notified that the late fee for delay in filing of the returns, GSTR-3B and GSTR-1 for the periods February, March and April shall be waived. Waiving the late fee for GSTR-1, the Notification also said that “the amount of late fee payable under section 47 of the said Act shall stand waived for the months of March, 2020, April, 2020 and May, 2020, and for the quarter ending 31st March, 2020, for the registered persons who fail to furnish the details of outward supplies for the said periods in FORM GSTR-1 by the due date, but furnishes the said details in FORM GSTR-1, on or before the 30th day of June, 2020 More Late Fee payable for Delay in Filing GSTR-3B due to System Error: GSTN The Goods and Services Tax Network ( GSTN ) portal recently clarified the liability to pay the late fee for filing GSTR-3B with delay. A taxpayer asked, “Supply to SEZ with payment of IGST shown under the taxable supply column instead of the zero-rated column in GSTR 3B. While applying for the refund of IGST paid, the system displays an error that you can’t claim more than what you mentioned in the zero-rated column in 3B. What is the solution?”. To this, it was replied that all zero-rated supplies are to be reported in 3.1(b) of GSTR-3B. Govt waives Late Fee for GSTR 3B till September 2018 The Central Government has notified the waiver of late fee for GSTR 3B for the period July 17 to September 2018. As per a notification issued by the Central Board of Indirect Taxes and Customs ( CBIC ), the Government has waived the amount of late fee payable by any registered person for failure to furnish the return in FORM GSTR 3B for the month of July, 2017 onwards by the due date under section 47 of the Act, which is in excess of an amount of twenty-five rupees for every day during which such failure continues. According to the recommendation of the GST Council, the late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months/quarters July 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019. GST Council Meet: Amnesty Scheme to Reduce GST Late Fee for Small Taxpayers The Union finance minister Nirmala Sitharaman chaired the Goods and Services Tax ( GST ) Council meeting on Friday, has recommended the Amnesty Scheme to Reduce GST Late Fee. In order to provide relief to small and medium taxpayers amid the second wave of coronavirus pandemic, the Finance Minister announced a special amnesty scheme. The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to be capped to Rs 500 ( Rs 250 CGST + Rs 250 SGST ) per return, if tax liability is nil in the return, and Rs 2000 ( Rs 1000 CGST + Rs 1000 SGST ) per return for others. Govt waives Late Fee for FORM GSTR-3B for Taxpayers subject to Conditions The Central Government today notified waiver of the Late Fee for FORM GSTR-3B by those registered persons whose declaration in FORM GST TRAN-1 was submitted but not filed on the common portal on or before 27.12.2017, subject to certain conditions. A Notification issued by the Central Board of Indirect Taxes ( CBIC ) today said that “on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure to furnish the return in FORM GSTR-3B by the due date for each of the months from October, 2017 to April, 2018, for the class of registered persons whose declaration in FORM GST TRAN-1 was submitted but not filed on the common portal on or before the 27th day of December, 2017.” This is subject to a condition that such registered persons have filed the declaration in FORM GST TRAN-1 on or before the 10th day of May 2018 and the return in FORM GSTR-3B for each of such months, on or before the 31st day of May 2018. GST: Govt Waives Late Fee for July Returns The Central Government on Friday clarified that no late fee would be levied on the tax payers who failed to furnish the return in FORM GSTR-3B for the month of July, 2017 by the due date. Further, the Central Government, in June, released a press release clarifying that it will relax the return filing procedure for first two months of GST implementation . on 18th July also, the Finance in a press release announced Relaxation in return filing procedure for first two months of GST implementation. Govt waives Late Fee for Delay in furnishing GSTR-4 The Central Government, today, waived the late fee payable under section 47 of the said Act, by any registered person for failure to furnish the return in FORM GSTR-4 by the due date, which is in excess of an amount of twenty five rupees for every day during which such failure continues. However, this is subject to a condition that where the total amount payable in lieu of central tax in the said return is nil, the amount of late fee payable under section 47 of the said Act, by any registered person for failure to furnish the said return by the due date shall stand waived to the extent which is in excess of an amount of ten rupees for every day during which such failure continues. GSTR-4 is a quarterly return that taxpayers opting for Composition Scheme need to furnish. Last Date for filing GSTR 1 is Today: Delay in filing Return would attract Late Fee The last date for filing GSTR 1 expires today. Any delay in filing the return would attract a late fee of Rs 100 per day ( CGST/SGST each ). As per a recent Notification issued by the Central Board of Excise and Customs ( CBEC ), registered persons with an aggregate turnover of more than Rs. 1.50 crores shall file their GSTR1 return for the months July to November within 10th January. GSTR1 for December can be filed until February 10th. Quarterly return for registered persons with aggregate turnover up to Rs. 1.50 crores shall file GSTR1 for July to September on or before 1st January 2017. Further, GSTR1 for October to December can be filed until February 15th and January to March 2018 can be filed until 30th April 2018. Traders body CAIT, on Tuesday, demanded an extension of the deadline for filing final sales returns under the GST regime till month end citing glitches on the GSTN portal. However, sources said the due date for filing GSTR-1 is unlikely to be extended beyond today. GST Returns: Government collected INR 107 Crore as GST Late Fee in last Two Years The Goods and Services Tax ( GST ), Ranchi, while responding to an RTI application filed by an individual, revealed that the Government has collected Rupees 1,07,02,47,136/- towards late fee on delay in filing GSTR 3B and other GST Returns in last two years. However, there is no information regarding the number of late fees collected from 2017 to 2019. The application also requested for information regarding the amount of tax and and penalty collected by the Govt. under Section 16(4) of the CGST Act for the period from 01.07.2017 to 30.04.2021. With regard to this, the department responded that n such specific information was available. Issue of GST Late Fee for past period (August 2017 to January 2020) to be discussed in the next GST Council Meeting: Finance Ministry In the recent past, tweets have been noticed by the Government on the issue of waiver of the late fee applicable on non-filing of GSTR-3B returns. The demands are largely for the waiver of late fee for the returns which were required to be filed from the beginning of Goods & Services Tax ( GST ) i.e. August, 2017. In GST, all decisions are taken by the Centre and the State with the approval of the GST Council. It would not be possible or desirable for the Central Government to unilaterally take a view on this issue and therefore, the trade is informed that the issue of the late fee would be taken up for discussion in the next GST Council meeting. Govt Clarifies Issues on Late fee amount shown in GSTR 3B of September, 2017 The Central Government clarified that the late fee amount shown in their GSTR 3B return is an account of late filing of August returns. The delay between date of submission (D1) and date of filing (D2) amounting to Rs. 1000.00 (5*100*2), is to be paid by the taxpayer in the month of October, while filing GSTR 3B return for the month of September. The same is now being added in the return and shown to the taxpayer. Gujarat High Court dismisses PIL Challenging GST Late Fee A two-judge bench of the Gujarat High Court has recently dismissed a Public Interest Litigation ( PIL ) challenging the imposition of the late fee for the delayed filing of returns under the Goods and Services Tax ( GST ) regime pointing out that there is no ‘public interest’ involved in the matter The ruling would be a setback for the taxpayers and tax practitioners for whom return filing through the GST portal is nothing less than a nightmare from the initial days of the GST– Rollout. Despite multiple deadlines and Court directions to fix issues over the log-in errors and missing data, GST is still tripping up on technical glitches. To Read the full text of the Order CLICK HERE Late Fee for GST Returns Reduced: Major Policy decisions taken by GST Council Today The Union Finance Minister Arun Jaitley Chaired the 25th Meeting of the GST Council in New Delhi today. The following Policy Changes have been recommended by the GST Council in its 25th meeting held today: Certain modifications are being made to the e-way bill rules which are to be notified nationwide for inter-State movement with effect from 01.02.2018 and for intra-State movement with effect from a date to be announced separately by each State but not later than 01.06.2018. The report and recommendations submitted by the Committee on Handicrafts were also accepted by the GST Council. No Relaxation during Interim Period: GSTN Started Levying Late Fee for late Filing of GST Return Despite the press release of the Finance Ministry that the Government will not charge any late fee or penalty for late filing of GST returns during the interim period, tax payers reported that the Goods and Services Tax Network ( GSTN ) has started to levy penalty for late filing of GSTR 3B. In the above press release, the Government had specifically stated that “No late fees and penalty would be levied for the interim period. This is intended to provide a sense of comfort to the taxpayers and give them an elbow room to attune themselves with the requirements of the changed system. This not only underlines the government’s commitment towards ensuring that all the stakeholders are on board but also provides an opportunity to the taxpayers to be ready for this historic reform.” However this Relaxation for levying of late fees or penalty is now contradicted by GSTN levying late fees. Late Fee for GSTR 1, 2 and 3 Not Waived, says CBEC In a set of Frequently Asked Questions ( FAQs ) released by the GST@GOI, the official twitter handle of the government for GST clarified that late fee for delay in filing GSTR-3B only is waived as of now. While dealing with a query whether the late fee for GSTR 1, 2 and 3 for the months July, August and September has been waived, the Government answered in negative. Regarding the impact for freelancer ( exporter of service ), payment receiving through Paypal or work into local bank transfer, it said that ‘for qualifying as export of service, all conditions under section 2(6) of the IGST Act must be satisfied, that is, consideration must be received in foreign convertible currency. If not, it is an inter-State supply on which IGST must be paid.’ Relief to Taxpayers: Rajasthan Govt. to Reimburse GST Late Fees The Rajasthan Government has issued an order to reimburse the late fees paid by taxpayers during filing GST Returns for the period from April 2021 to March 2022 in a manner which will be prescribed shortly. Before, the same Rajasthan Government has issued a circular for correct submission of GST returns and is also reported by Taxscan. The circular is issued in the light of instances that came to notice of the department where the taxpayers have not disclosed ineligible ITC in GST-3B on account of IGST paid on inward interstate supply and import supplies which might have culminated in short transfer of IGST funds to the state GST Late Fee on FORM GSTR-4 Waived Notification No: No. 12/2022–Central Tax Date of Judgement: 5th July, 2022 The Central Board of Indirect Taxes and Customs ( CBIC ) has notified the waiver of GST FORM GSTR-4 for the financial year 2021-22. The notification was issued on Monday to give effect to the recommendation of the 47th GST Council concluded in Chandigarh last week. The notification has extended the waiver of late fee for delay in filing FORM GSTR-4 for FY 2021-22 stated to amend the principal notification that “In the said notification, in the sixth proviso, for the figures, letters and words “30th day of June, 2022”, the figures, letters and words “28th day of July, 2022” shall be substituted.” Form GSTR-4 (Annual Return) is a yearly return to be filed once, for each financial year, by the taxpayers who have opted for the composition scheme during the financial year, or were in the Composition scheme for any period, during the said financial year, from 1st April, 2019 onwards. GST Late Fee waived for Delay in Filing of GSTR-04 and CMP-08 The 47th GST Council has recommended to waive late fee for delay in filing FORM GSTR-4 for FY 2021-22 and extension of due date for filing FORM GST CMP-08 for the first quarter of FY 2022-23. The GSTR- 4 form is an annual return form for those taxpayers who have opted GST Composition scheme in the new indirect tax regime. Under the GST composition scheme, taxpayers will be required to file only one return in every financial year. Form GST CMP-08 is used to declare the details or summary of self-assessed tax which is payable for a given quarter by taxpayers who are registered as composition taxable person or taxpayer who have opted for composition levy. GST Portal Update: Reduced Late Fees for Pending GST Annual and Final Returns GSTR-9, GSTR-9C and GSTR-10 Implemented The Goods and Services Tax Network ( GSTN ) has implemented the reduction of late fees for late filing of pending Goods and Services Tax Returns – GSTR-9, GSTR-9C and GSTR-10 in the GST Portal. Late Fees reduction for pending Final Return GSTR-10 maximum late fees has been now capped at Rs. 1000/- ( CGST + SGST ), if the same is filed between April 01, 2023 to June 30, 2023. CBIC extends GST Return Due Dates, Waives Late fee for GSTR-3B While the country is suffering from the COVID-19 pandemic, the Government has allowed great relief to the taxpayers by extending the deadlines to file various GST returns. The Government also waived off the late fee payable for the delayed filing of GSTR-3B. Also, GSTR-1 due date for April 2021 extended to 26th May and IFF due date extended to 28th May. The Government further relaxed the levy of interest for non-payment/short payment or delay in the payment of tax dues for the months of April and May 2021. GST: CBIC notifies Zero Late Fees on GSTR-3B with NIL Liabilities The Central Board of Indirect Taxes and Customs ( CBIC ) has notified waive off late fees on GSTR-3B with Nill Liabilities. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest. GSTR-3B is a monthly self-declaration that has to be filed by a registered dealer from July 2017 till March 2020. The Notification shall be deemed to have come into effect from the 25th day of June, 2020. CBIC again extends Waiver of Late Fee of all Pending Form GSTR-1 from July 2017 to Nov 2019 The Central Board of Indirect Taxes and Customs ( CBIC ) has again extended the waiver of late fee of all pending Form GSTR-1 from July 2017 to November 2019 till January 17th, 2020. Earlier, the GST council in its 38th meeting on 18th Dec 2019 had recommended that late fee chargeable on the filing of statements of output supplies in Form GSTR-1s, be waived for the GSTR-1 pertaining to period July, 2017 to Nov 2019 if the same is filed by 10/01/2020. In a Tweet, the Finance Ministry said that, the response to this waiver has been very encouraging and since the announcement on 18.12.2019, 54 lakhs GSTR-1 have gotten filed till 09.01.2020. On average, only about 25 lakh monthly GSTR-1 get filed. In the view of such a huge response, which would lead a reduction in unmatched credit, it has been decided to extend the said amnesty scheme from 10th January 2020 to 17th January 2020. GST Council waives of Late Fee of all Pending Form GSTR-1 from July 2017 to Nov 2019 The 38th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman today waived of a late fee to be given all taxpayers in respect pf all pending Form GSTR-1 from July 2017 to November 2019, if the same is filed by January 10th, 2020. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of Ministry of Finance. The Finance Minister Nirmala Sitharaman also said that E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked. GST: Delhi Govt waives off Late Fee for registered person who failed to furnish the return in FORM GSTR-3B The Delhi Government notified the waiver of the late fee for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July 2017 to January 2020. The notification seeks to amend the Notification No. 76/2018– State Tax, dated the 3rd September, 2019. It was further notified that where the total amount of state tax payable in the said return is nil, the total amount of late fee payable for a tax period, under section 47 of the said Act shall stand waived for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July 2017 to January 2020, by the due date but furnishes the said return between the period from 1 July 2020 to 30th day of September 2020. This notification shall come into force with effect from 24th June 2020. CBIC waives off Late Fee on failure to furnish the return in FORM GSTR-10 The Central Board of Indirect Taxes and Customs ( CBIC ) waived off the late fee payable for failure to furnish the return in FORM GSTR-10. As per section 47(1) of the CGST Act, any registered person who fails to furnish the requisite returns by the prescribed due date shall pay a late fee of Rs 100 for every day during which such failure continues. Such a fee is subject to a maximum amount of Rs 5,000. The Board waived the amount of late fee payable under section 47 of the CGST Act which is in excess of Rs.250 for the registered persons who fail to furnish the return in FORM GSTR-10 by the due date but furnishes the said return between the period from 22 September, 2020 to 31 December, 2020. The waiver comes in wake of COVID-19 pandemic to provide relief to the persons registered under Goods and Service Tax. Govt Reduces Amount of Late Fee Payable for delay in Filing GSTR-3B from October The Central Government today notified the new rate of penalty amount payable for delayed filing of return in FORM GSTR-3B from October, 2017 onwards subject to a condition that where the total amount of central tax payable in the said return is nil. Granting relief to the tax payers, the GST Council, on last Friday has decided that from October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was ‘NIL’ will be Rs. 20/- per day ( Rs. 10/- per day each under CGST & SGST Acts ) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts). GST Dept started Issuing Late Fee for GSTR-1 Defaulters After implementing the amendment in section 37(4) of the Central GST Act, 2017, the GST department has started issuing late fee for defaulters of GSTR-1. As per section 37(4), a registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period, if the details of outward supplies for any of the previous tax periods has not been furnished by him The input claimed on the missing invoices by the recipient shall be filed by the seller within the next two tax periods from the input claimed by the recipient. If the same is not filed by the supplier, the input claimed by the recipient shall be reversed with interest and penalty. CBIC waives off Late fees for Filing GSTR-1, GSTR-7 & GSTR-3B for Registered Persons in Jammu & Kashmir The Central Board of Indirect Taxes and Customs ( CBIC ) has waived off late fees for filing of GSTR-1, GSTR-7 and GSTR-3B for the registered persons in Jammu and Kashmir the registered persons whose principal place of business is in the State of Jammu and Kashmir, who have furnished, electronically through the common portal, return in FORM GSTR-3B of the said rules, for the month of August, 2019, on or before the 20th October, 2019, for failure to furnish the said FORM GSTR-3B by the due date”, the notification also added. To Read the full text of the Notification CLICK HERE GST Council waives Late Fee for Some Returns The 31st GST Council meeting has waived the late fee for some returns such as FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the periods July 2017 to September 2018. According to the recommendation of the GST Council, the late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months/quarters July 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019. It was further recommended that one more window for completion of the migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July 2017 to February, 2019/quarters July 2017 to December 2018 by such taxpayers shall be extended till 31.03.2019 GST: Govt Waives Late Fee for August and September Returns The Central Government today clarified that no late fee would be levied on the tax payers who failed to furnish the return in FORM GSTR-3B for the month of August and September, 2017 by the due date. Electronic cash ledger of the taxpayers who have already paid the late fee on filing of GSTR-3B either for the month of August or September, 2017 or those who pay such fee before the necessary changes are carried out in the IT system will be credited with the amount of late fee so paid be them. The enabling notifications are being issued shortly. The Government will not charge any late fee or penalty for late filing of GST returns during the interim period, tax payers reported that the Goods and Services Tax Network (GSTN) has started to levy penalty for late filing of GSTR 3B. Nil Late Fee on GSTR-3B: System not Updated, Excess Amount would be re-credited soon The Goods and Services Tax portal has today said that the system has not been updated according to the change in the late fee for the delay in GSTR-3B. The Central Board of Indirect Taxes and Customs ( CBIC ) has notified that late fees on GSTR-3B would be waived off with Nill Liabilities. In a Notification issued by CBIC said that, For the period from July 2017 to Jan 2020, which is prior to the COVID period, a lot of Return Filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020, there will be zero late fees. As per the notification, for the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year, who fail to furnish the return in FORM GSTR-3B for the months of May 2020 to July 2020, by the due date but furnish the said return till the 30th day of September 2020, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived for those taxpayers where the total amount of central tax payable in the said return is nil”. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest. Breaking: Govt waives Late Fee on certain GST Returns The Central Board of Indirect Taxes and Customs ( CBIC ) have notified that no late fee would be payable on the following GST Returns. the registered persons whose return in FORM GSTR-3B of the Central Goods and Services Tax Rules, 2017 for the month of October 2017, was submitted but not filed on the common portal, after generation of the application reference number; The last date for filing GST returns for July was August 25 for taxpayers who did not want to claim transitional input tax credit, while it was August 28 for those who wanted to avail transitional credit. On Tuesday, finance minister Arum Jaitley, while announcing the figures for GST collections for July, had said that a nominal late filing penalty of Rs 100 per day for CGST and SGST each will be levied for those who haven’t yet paid the GST. Govt Notifies Reduction in Late Fee for GST Returns The Central Government today notified that the late fee for filing of certain GST Returns, i.e., GSTR-1, GSTR-5, GSTR-5A & GSTR-6 has reduced to Rs. 50 per day. The last meeting of the Goods and Services Tax Council, held on 18th January recommended the Government to reduce the late fee. n case of GSTR5A, the Notification said that where the total amount of integrated tax payable in the said return is nil, the amount of late fee payable by such registered person for failure to furnish the said return by the due date under section 47 of the said Act shall stand waived to the extent which is in excess of an amount of ten rupees for every day during which such failure continues. Rajasthan GST Dept. Issues Guidelines for Refund of Late Fee and Deposit u/s 47 of the RGST Act Order No: F.17 ( 137 ) ACCT / GST/2017/8289 Date of Judgement: 10th March 2023 In accordance with Order No. F.17 (137) ACCT/GST/2017/8289 dated March 10, 2023, the Commercial Taxes Department of the Government of Rajasthan has issued guidelines for the repayment of late fees paid and deposited in compliance with Section 47 by registered taxable persons as defined by the Rajasthan Goods and Services Tax Act, 2017 ( RGST Act ). The instructions were purely based on the order No. F.12 (15) FD/Tax/2023-102, dated February 10, 2023 for reimbursement of late fee payable and deposited under Section 47 by the registered taxable person under the Rajasthan Goods and Services Tax Act, 2017 for the period from April 2021 to March 2022. Delhi GST waives off Late Fees for filing Return under GST The Delhi Goods and Service Tax ( GST ) department waived off late the late fees for filing returns under GST, which will be enforced retrospectively with effect from the 19th December, 2019. The Lt. Governor of the National Capital Territory of Delhi, on the recommendations of the Council, notified further amendment in the notification of the Government of National Capital Territory of Delhi in the Department of Finance(Revenue-1) No. 4/2018– State Tax, dated the 23rd February 2018. In the said notification, after the second proviso, “provided also that the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the details of outward supplies in FORM GSTR-1 for the months/quarters from July 2017 to November 2019 by the due date but furnishes the said details in FORM GSTR-1 between the period from 19th December 2019 to 10th January 2020,” proviso shall be inserted. GST Department Issues Notice for Payment of Interest on Late Fees Paid in Nil GSTR-3B The Goods and Services Tax ( GST ) has issued a notice to a taxpayer for the payment of interest on a late fee paid in Nil GSTR-3B. Mr. Suresh Patel, tweeted, “My client received interest due to notice for 2017-18 for nil GSTR – 3B. He paid the applicable Late Fees. His question was “Is interest is applicable on late fees too? Under Goods & Service Tax Act?” He tagged the official Goods & Service Tax Network ( GSTN ) Twitter handle in his tweet. GST applicable on Interest / Late Fee / Penalty due to delayed payment of consideration received after its imposition: AAR The Chennai Bench of Authority of Advance Rulings ( AAR ) in an application filed by M/s Chennai port Trust held that interest, late fee and penalty due to delayed payment of consideration received after imposition of GST is liable to GST. The bench constituting of Members Ms M.G. Kata and T.K. Selvaan held that the amounts received on or after 01.07.2017 towards interest, late fee, penalty relating to the services of lease/rent, due to delayed payment of consideration for those services rendered by the applicant before 01.07.2017, are liable to GST. It has been held that there is a payment of a separate consideration for this tolerance of delayed payment of lease/rent. Thus, this tolerance on the part of the applicant for the delayed payment of lease/rent by collecting an interest/late fee/penalty is a separate supply of service as covered by Section 7(1)(a) of the CGST Act. Businesses approach Gujarat High Court to extend Income Tax, GST Due Dates or Relax Late Fee amid Pandemic In the wake of the second all-India surge of the covid-19 pandemic devasting the economy, the Association of Industries & Institutions and A.S Construction has filed a writ petition before the Gujarat High Court which will be argued by Learned Advocate Dr. Avinash Poddar along with Advocate Dr. Gaurav Gupta, Advocate Mr Nipun Singhvi and Advocate Mr. Vishal Dave seeking a direction to extend the due dates for income tax, GST and other statutory compliances. It is also stated in the petition that the current emergency-like situation of the corona pandemic in the country is not in anyone’s control and therefore, the assessees at large should not be subject to unnecessary difficulty in any form. The petition further sought for direction from the Court to instruct the departments not to initiate any coercive action on the assessees under various Acts unless necessary with prior approval of the appropriate authority till the time the pandemic settles down or for a specified period. Govt waives Late Fee for GSTR-1, GSTR-3B and GSTR- The Central Government has notified the waiver of GST late fee for the returns GSTR-1, GSTR-3B and GSTR-4 last day. The 31st GST Council meeting had waived the late fee for some returns such as FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the periods July 2017 to September 2018. According to the Notification issued on Monday, the late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months/quarters July 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019. It was further recommended that one more window for completion of the migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID ( PID ) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July 2017 to February, 2019/quarters July 2017 to December 2018 by such taxpayers shall be extended till 31.03.2019. Rajasthan HC directs to accept filing of GSTR-9 and GSTR-9C till Feb 12 without Late Fees The Rajasthan High Court has directed the GST Department to accept the filing of GSTR-9 and GSTR-9C till February 12th 2020 without late fees. The Petitioner apprised the Court regarding technical glitches being faced by the taxpayers in the filing of GSTR-9 / 9C on the GSTN portal. The counsels Advocates Sanjay Jhanwar, Rahul Lakhwani and Prateek Gattani also informed the court regarding new ways of extension of the date by CBIC through its twitter handle. The PIL was strongly opposed by the Counsel of Union of India and State of Rajasthan on the ground that why the taxpayers are waiting for the last date for filing of the return. The High Court turned down the arguments of UOI on the basis that it is a legal right of the taxpayers to file return up till the last date. Further, an advocate of the Petitioner Association Mr Sanjay Jhanwar demonstrated various instances of the technical difficulties as faced by the taxpayers through various screenshot up to 04th Feb 2020 during the extended period. CA Misses GST SCN and Order: Madras HC directs for Reconsideration considering Remittance of Entire Late Fee for GSTR Non-Filing Prakash Fabricators & Electricals vs The Assistant Commissioner CITATION: 2024 TAXSCAN (HC) 1545 In a recent ruling, the Madras High Court directed the GST department to reconsider its order after taking into account the full remittance of the GST late fee for Non-filing of GST Returns ( GSTR ). The High Court observed that the taxpayer failed to file objections to the show cause notice. Considering the taxpayer’s claim that they were unaware of the proceedings, the court stated that the interest of justice warrants reconsideration of the GST order, particularly since the petitioner had remitted the entire late fee portion. Thus, the bench set aside the GST order challenged and remanded the matter for reconsideration. Delhi Govt. waives off late fee on failure to furnish details of outward supplies in FORM GSTR-1 but furnishes details in FORM GSTR-1 The Delhi Government notified to waive off late fee for the months of March, 2020, April, 2020 and May, 2020 on failure to furnish details of outward supplies in FORM GSTR-1 but furnishes details in FORM GSTR-1. In the said notification, after the third proviso, the “provided also that the amount of late fee payable under section 47 of the said Act shall stand waived for the months of March, 2020, April, 2020 and May, 2020, and for the quarter ending 31st March, 2020, for the registered persons who fail to furnish the details of outward supplies for the said periods in FORM GSTR-1 by the due date, but furnishes the said details in FORM GSTR-1, on or before the 30th day of June, 2020.” proviso shall be inserted. Zero Late Fees on GSTR-3B with NIL Liabilities, Late Fee capped at 500rs: GST Council The Goods and Services Tax ( GST ) Council today decided to waive off late fees on GSTR-3B with Nill Liabilities. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest. For small taxpayers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9% GSTR-3B is a monthly self-declaration that has to be filed a registered dealer from July 2017 till March 2020 No Late Fee for Delayed filing of GSTR-5A: GSTN The Goods and Services Tax Network ( GSTN ) today clarified that no late fee is payable for delayed payment of GSTR-5A by the Online Information and Database Access or Retrieval ( OIDAR ) services provider. GSTR-5A is a return to be furnished by Online Information and Database Access or Retrieval ( OIDAR ) services provider to the un-registered person or customers, on the GST Portal for the services provided from a place outside India to a person in India, other than a registered person. The GSTN, while issuing taxpayers guide, also said that the OIDAR services provider cannot claim any input tax credit in GSTR-5A. It further said that GSTR-5A return can be filed for a period only after making full payment of taxes and other liabilities. A taxpayer cannot file GSTR-5A for the current period, if the return for previous period has not been filed, it said. GST Return: CBIC waives GSTR-4 Late Fee Notification No: 07/2022 Date of Judgement: 26th May, 2022 The Central Board of Indirect Taxes and Customs ( CBIC ) has waived the late fee for GSTR-4 till 30th June 2022. GSTR-4 is a GST Return that has to be filed by a composition dealer. Unlike a normal taxpayer who needs to furnish 3 monthly returns, a dealer opting for the composition scheme is required to furnish only 1 return which is GSTR 4 once in a year by 30th of April, following a financial year. The notification issued on Thursday provided that “the late fee payable for delay in furnishing of FORM GSTR-4 for the Financial Year 2021-22 under section 47 of the said Act shall stand waived for the period from the 1st day of May, 2022 till the 30th day of June, 2022. CBIC notifies corrigendum for Amended GST Rates under GST Composition Scheme and Waiver of Late Fee for delay in filing GSTR-1- March to June 2020 The Central Board of Indirect Taxes and Customs ( CBIC ) on Friday issued the Corrigendum for the amended GST rates under GST Scheme and Waiver of late fee for delay in filing GSTR-1– March to June 2020 which was notified by the Notification No. 50/2020-Central Tax Dated June 24, 2020, and Notification No. 53/2020-Central Tax Dated 24th June 2020 respectively. In the notification of the Government of India, in the Ministry of Finance, Department of Revenue, No. 53/2020-Central Tax, dated the 24th June 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 406(E), dated the 24th June 2020, at page 12, in line 17, for the words “third proviso”, read “fourth proviso”, the notification clarified. GST: Delhi Govt. waives late fee for Taxpayers who fails to furnish Returns in FORM GSTR-3B by the due date The Delhi Government notified the waiver of the late fee for the taxpayers who fail to furnish returns in FORM GSTR-3B by the due date. The government empowered under section 128 of the Delhi Goods and Services Tax Act, 2017, read with section 148 of the said Act amended the notification No.76/2018-State Tax, dated the 3rd September 2019. Lastly, the taxpayers having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year for the tax period of April, 2020, if return in FORM GSTR-3B is furnished on or before the 6th day of July, 2020, then only the late fee will be waived off. This notification shall come into force with effect retrospectively from the 20th March, 2020. Late fee for GST Returns Reduced: CBIC issues Notification The Ministry of Finance has issued 3 notifications reducing the Late fee for GST Returns as proposed in 43rd GST Council meeting under the Chairmanship of Union Finance & Corporate Affairs Minister, Nirmala Sitharaman. The Board has rationalized late fee for delay in furnishing of the statement of outward supplies in FORM GSTR-1 from the tax period June 2021 onwards. The total amount of late fee payable under section 47 of the said Act by such registered person for failure to furnish the return in FORM GSTR-7 for the month of June, 2021 onwards, by the due date, shall stand waived which is in excess of an amount of Rs.1000. To Read the full text of the Notification CLICK HERE Demand of Late Fee for Belated GSTR 9 C is not valid as CGST Notification waived it: Kerala HC allows Refund of Late Fee paid ANISHIA CHANDRAKANTH vs THE SUPERINTENDENT CITATION: 2024 TAXSCAN (HC) 861 Kerala High Court in its recent judgement held that the demand for a late fee for belated GSTR 9 C is not valid as the Central Goods and Service Tax ( CGST ) notification waived it and allowed the refund of the late fee paid. The court held that the petitioners will not be entitled to claim a refund of the late fee which has already been paid by them over and above Rs.10,000/-. Justice Dinesh Kumar Singh observed that when the Government itself waived the late fee under the aforesaid two notifications Nos.7/2023 dated 31.03.2023 and 25/2023 dated 17.07.2023 more than Rs.10,000/-, in case of non-filers there appears to be no justification in continuing with the notices for non-payment of late fee for belated GSTR 9C, that too filed by the taxpayers before 01.04.2023, the date on which one-time amnesty commences. While allowing the petition, the court held that the petitioners will not be entitled to claim a refund of the late fee which has already been paid by them over and above Rs.10,000/-. Late Fee Waiver above Rs.10,000 as per CGST Notification: Kerala HC Quashes Order Demanding Late Fee for Delay In Filing GSTR-9C RAJU SREEDHARAN vs THE SUPERINTENDENT CITATION: 2024 TAXSCAN (HC) 1481 In a recent case, the Kerala High Court quashed the order demanding a late fee for delay in filing GSTR-9C as there was a Centre Goods and Service Tax ( CGST ) notification waiving a late fee above Rs. 10,000. Raju Sreedharan, the petitioner- assessee filed the annual return in Form GSTR-9 along with GSTR-9C for the financial years 2018–2019 and 2019–2020 belatedly. However, the respondent has demanded a late fee and created a huge demand by order. GSTR-9C is a reconciliation statement for reconciling values between the annual GSTR-9 of a financial year and the audited financial statements of the taxpayer. Every registered taxpayer whose turnover exceeds Rs. 5 crore during a financial year is required to file this reconciliation statement.The court set aside the order to the extent it sought to collect a late fee for delay in filing GSTR-9C. However, the petitioner will not be entitled to claim a refund of the late fee that has already been paid by him over and above Rs. 10,000. Meera V. Menon appeared for the petitioner and Sreelal N. Warrier appeared for the respondent No Late Fee for GSTR 9 C Filing: Kerala HC In a recent judgment, the Kerala High Court, that no late fee can be levied for late filing of GSTR-9C for the financial years 2017-18, 2018-19, and 2019-20. The judgment would be a significant relief to taxpayers who are in crisis regarding the late filing of GSTR-9C. Notices were already issued for late fees despite taxpayers filing GSTR-9C beyond the due dates but before the commencement of the amnesty scheme. Even more astonishing is the fact that the amnesty scheme, intended to favour compliant taxpayers, was applied retrospectively to those who had already filed their GSTR-9C. When a business doesn’t file a Goods and Services Tax ( GST ) return or pay tax liability on time, the department will charge late fees and interest. Hence, understanding these aspects is important for businesses. The ruling sets a precedent that ensures that compliant taxpayers are not penalized unfairly. The ruling turned out to be a beacon of hope for taxpayers navigating the complexities of GST regulations GST: Delhi Govt. waives off late fee on failure to furnish details of Outward Supplies in FORM GSTR-1 The Delhi Government waived off the late fee on failure to furnish details of outward supplies in FORM GSTR-1. The notification seeks to amend Notification No. 4/2018–State Tax, dated the 23rd February, 2018, wherein the Delhi Government notified to waive off late fee for the months of March, 2020, April, 2020 and May, 2020 on failure to furnish details of outward supplies in FORM GSTR-1 but furnishes details in FORM GSTR-1. Lastly, the registered persons who fail to furnish the details of outward supplies for the quarter of April to June, 2020 in FORM GSTR-1 by the due date, but furnish the said details on or before the 3 August, 2020. CBIC notifies Late fee capped at Rs. 500/- for each GSTR-3B Return In a major relief to the GST taxpayers, the government has decided to cap the maximum late fee for Form GSTR-3B at Rs. 500/- ( five hundred only ) per return for the tax period July 2017 to July 2020 subject to the condition that such GSTR -3B returns being filed before 30th September 2020. Various representations were received to give further relief in a late fee charged for the tax periods of May 2020 to July 2020, in addition to earlier provided relief for February 2020 to April 2020 and relief provided for cleaning up past pendency of returns from July 2017 to January 2020. Also, a uniform late fee is simpler in design and easier to implement on an automated common portal. So, the late fee is capped at Rs. 500/- only per return, if filed before 30th September 2020 CBIC waives off Late Fees for one day to Taxpayers facing Technical Glitches while filing GST Returns The Central Board of Indirect Taxes and Customs ( CBIC ) directed the Goods and Service Tax Networks to waive off Late Fees and interest for one day due to technical glitches in the updation of Electronic Cash Ledger while filing GSTR-3B returns. A few taxpayers have reportedly faced difficulty in the updation of their Electronic Cash Ledger on September 20, 2021, while filing their GSTR-3B returns. To mitigate their difficulties, GSTN has been directed to take up the issue of waiver of late fee and interest for one day for such taxpayers, before the IT Grievance Redressal Committee CBIC notifies waiver of Late Fee of all Pending Form GSTR-1 from July 2017 to Nov 2019 The Central Board of Indirect Taxes and Customs ( CBIC ) has notified the waiver of late fee of all pending Form GSTR-1 from July 2017 to November 2019. In the 38th meeting of the GST Council meeting waived of a late fee to be given all taxpayers in respect of all pending Form GSTR-1 from July 2017 to November 2019, if the same is filed by January 10th, 2020. The due dates for GSTR-1 are based on your turnover. Businesses with sales of up to Rs. 1.5 crore will file quarterly returns. Other taxpayers with sales above Rs. 1.5 crores have to file monthly return. CBIC waive late fee on failure to furnish FORM GSTR-4 for FY 2019-20 for the registered person in the Union Territory of Ladakh The Central Board of Indirect Taxes and Customs ( CBIC ) waived the late fee on delay in furnishing of FORM GSTR-4 for Financial Year 2019-20 for the registered person in the Union Territory of Ladakh. The CBIC empowered under section 128 of the Central Goods and Services Tax Act, 2017, read with section 148 of the said Act amended the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 73/2017– Central Tax, dated the 29th December, 2017. The notification pertains to waiver of the late fee payable for failure to furnish the return in FORM GSTR-4. “Provided also that the late fee payable for delay in furnishing of FORM GSTR-4 for the Financial Year 2019-20 under section 47 of the said Act, from the 1st day of November, 2020 till the 31st day of December, 2020 shall stand waived for the registered person whose principal place of business is in the Union Territory of Ladakh,” the notification said. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates