11 July 2024
Section 47 of the Central Goods and Services Tax (CGST) Act, 2017 in India pertains to the **Levy of late fee** for delayed filing of GST returns. Here’s a detailed explanation of what Section 47 entails:
### Key Points of Section 47:
1. **Late Fee Imposition**: Section 47 authorizes the levy of a late fee for delay in furnishing the prescribed GST returns within the stipulated due dates.
2. **Types of Returns**: It applies to various GST returns including GSTR-1 (for outward supplies), GSTR-3B (monthly/quarterly summary return), GSTR-4 (composition scheme return), GSTR-5 (non-resident taxable person), etc.
3. **Amount of Late Fee**: - The late fee is typically specified as a fixed amount per day of delay. - For example, as per the current provisions (up to my last update), late fee for delay in filing GSTR-3B is Rs. 50 per day (Rs. 25 for CGST and Rs. 25 for SGST) of delay. This amount may vary based on subsequent notifications by the government.
4. **Maximum Cap on Late Fee**: - There is generally a maximum limit on the late fee that can be charged, which is specified under the law. - For example, the maximum late fee for GSTR-3B is capped at Rs. 5,000 per return.
5. **Purpose**: The imposition of late fee aims to ensure timely compliance with GST filing requirements and discourage delayed filing, which could affect revenue reconciliation and tax administration.
6. **Administration**: The late fee is automatically calculated and added to the tax liability when the return is filed late. It forms part of the total amount payable by the taxpayer for that tax period.
### Compliance and Impact:
- **Avoiding Late Fee**: Taxpayers are encouraged to file their GST returns on time to avoid incurring late fees.
- **Penalties for Non-compliance**: Failure to pay the late fee along with the GST liability can lead to penalties and further legal consequences as per the GST laws.
### Recent Developments:
- It's important to stay updated with any amendments or notifications issued by the GST authorities regarding late fee provisions. The late fee amounts and conditions may be subject to change based on government notifications.
### Conclusion:
Section 47 of the CGST Act emphasizes the importance of timely compliance with GST return filing obligations by imposing a late fee for delayed submissions. It is designed to promote adherence to GST regulations and facilitate effective tax administration in India. For the most current information and specific details, referring to the latest notifications and consulting with a GST professional or legal advisor is recommended.
CAclubindia
