A. Provisions relating to Late Fees
The section 47 of the GST Act requires the registered person to pay late fees where returns are not filed by due date. The said section read as follows:
47. (1) Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.
(2) Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent. Of his turnover in the State or Union territory.
Thus, it is evident from above that registered person is required to pay late fee of ` 100/day where return u/s 37, 38, 39 & 45 are not filed by the due date. Similar provisions are contained under the SGST Act. Thus, total late fee comes upto ` 200/day during which such failure continues subject to the maximum late fee of ` 10000 (` 5000 CGST and ` 5000 SGST). Further if the annual return u/s 44 is not filed by 31st December following the end of financial year, then he shall be liable to pay late fees of ` 200/day (` 100 CGST and ` 100 SGST) subject to maximum of amount calculated at quarter per cent of his turnover in the State or Union territory.
B. Waiver and reduction of Late fee for GSTR 3B
1. Waiver of late fee for the month of July
The last date of filing GSTR 3B in lieu of filing GSTR 3 for the month of July 2017 was 25-08-2017 for taxpayer who have not opted to file TRAN-1 prior to this date and taxpayer who have opted to fi le TRAN 1 by 28-08-2017 the last date is 28-08-2017. Section 47 of the CGST Act provides for levy of late fees when there is delay in filing any return. However, the Central Government vide Not. No. 28/2017-CT, dated 1-9-2017 waived the payment of late fee u/s 47 of the GST Act where registered person does not file their GSTR 3B on time for the month of July 2017.
2. Waiver of late fee for the month of August and September
The Central Government on recommendation of council vide Not. No. 50/2017-CT dated 24-10-2017 waived the payment of late fee u/s 47 of the GST Act where registered person does not file their GSTR 3B on time for the month of August 2017 and September 2017.
3. Partial wavier of late fee from the month of October month onwards
The Central Government on recommendation of council vide Not. No. 64/2017-CT, dated 15-11-2017 has partially waived the quantum of late fee u/s 47 of the GST Act where the registered person has not furnished GSTR-3B for the month of October 2017, onwards by the due date. The notification provides that where the registered person has furnished return containing the tax liability, then in such case amount of late fee in excess of ` 25/day during which the failure continues has been waived off. Similar notification will be issued under SGST Act. Thus, amount of late fee in excess of `50/day (` 25 CGST and ` 25 SGST) during which failure continues has been waived off. However, where the person has furnished Nil return, the late fee in excess of ` 20/day (`10 CGST and `10 SGST) during which the failure continues has been waived off. For example, Mr. XYZ is required to file GSTR-3B for the month of August 2017 by 20th September 2017. However, he files return on 30th September 2017. As per the above notification he is required to pay late fees of ` 500 (50 per day X 10 Days).
C. Reduction of Late fee for GSTR-4
The Central Government on recommendation of council vide Not. No. 73/2017-CT, dated 29-12-2017 has partially waived the quantum of late fee u/s 47 of the GST Act where the registered person (composition dealer) has not furnished GSTR-4 by the due date. The quantum of partial waiver is same as that is provided in Not. No. 64/2017-CT, dated 15-11-2017 as mentioned above.
D The summary of the above notifications
1. Not. No. 28/2017-CT, dated 1-9-2017 - Waiver of late fee for late filing of GSTR-3B for the month of July 2017.
2. Not. No. 50/2017-CT dated 24-10-2017- Waiver of late fee for late filing of GSTR-3B for the month of August 2017 and September 2017.
3. No. 64/2017-CT, dated 15-11-2017 - Reduction (partial waiver) of late fee for late filing of GSTR-3B from the month of October 2017 onwards.
Filing GSTR3B with tax liability: 50/day (`25 CGST and `25 SGST).
Filing of nil Return: 20/day (`10 CGST and `10 SGST)
4. No. 73/2017-CT, dated 29-12-2017 - Reduction (partial waiver) of late fee for late filing of GSTR-4 from the month of October 2017 onwards.
Filing GSTR-4 with tax liability: 50/day (`25 CGST and `25 SGST).
Filing of nil Return: 20/day (`10 CGST and `10 SGST)
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