CBIC rationalizes late fee for delay in filing of return in Form GSTR-3B

Last updated: 02 June 2021

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The Central Board of Indirect Taxes and Customs (CBIC) has announced a rationalisation of late fees for delayed GSTR-3B filings, effective from 20th May 2021. This includes a conditional waiver for returns filed between June and August 2021 for the period of July 2017 to April 2021. New, capped late fees have also been introduced for filings from June 2021 onwards, depending on the taxpayer's turnover and tax liability.

Vide Notification No. 19/2021 – Central Tax, the Central Board of Indirect Taxes and Customs has rationalized the late fee for delay in filing of return in FORM GSTR-3B w.e.f 20th May 2021 and has provided a conditional waiver of late fee for delay in filing FORM GSTR-3B from July 2017 to April 2021. Moreover, the authorities have also provided a waiver of late fees for late filing of return in FORM GSTR-3B for specified taxpayers and specified tax periods. Read the official notification below:

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i)]

Government of India
Ministry of Finance (Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. 19/2021 – Central Tax
New Delhi, the 1st June, 2021

G.S.R (E).— In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 76/2018– Central Tax, dated the 31^st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1253(E), dated the 31^st December, 2018, namely:

CBIC Eases GSTR-3B Late Fees from May 2021

In the said notification,-

in the eighth proviso, with effect from the 20^th day of May, 2021, for the Table, the following Table shall be substituted, namely:

'Table

S. No. (1)	Class of registered persons (2)	Tax period (3)	Period for which late fee waived (4)
1.	Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year	March, 2021, April, 2021 and May, 2021	Fifteen days from the due date of furnishing return
2.	Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who	March, 2021	Sixty days from the due date of furnishing return
	are liable to furnish the return as specified under sub-section (1) of section 39	April, 2021	Forty-five days from the due date of furnishing return
		May, 2021	Thirty days from the due date of furnishing return
3	Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to sub- section (1) of section 39	January-March, 2021	Sixty days from the due date of furnishing return.';

after the eighth proviso, the following provisos shall be inserted, namely:

'Provided also that for the registered persons who failed to furnish the return in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from the 1^st day of June, 2021 to the 31^st day of August, 2021, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of five hundred rupees:

Provided also that where the total amount of central tax payable in the said return is nil, 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 for the registered persons who failed to furnish the return in FORM GSTR-3B for the months / quarter of July, 2017 to April, 2021, by the due date but furnish the said return between the period from the 1^st day of June, 2021 to the 31^st day of August, 2021:

Provided also that the total amount of late fee payable under section 47 of the said Act for the tax period June, 2021 onwards or quarter ending June, 2021 onwards, as the case may be, shall stand waived which is in excess of an amount as specified in column (3) of the Table given below, for the class of registered persons mentioned in the corresponding entry in column (2) of the said Table, who fail to furnish the returns in FORM GSTR-3B by the due date, namely:

Table

S. No. (1)	Class of registered persons (2)	Amount (3)
1.	Registered persons whose total amount of central tax payable in the said return is nil	Two hundred and fifty rupees
2.	Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year, other than those covered under S. No. 1	One thousand rupees
3.	Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year, other than those covered under S. No. 1	Two thousand and five hundred rupees'.

[F. No. CBIC-20001/5/2021]

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: The principal notification No. 76/2018-Central Tax, dated 31^st December, 2018 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1253(E), dated the 31^st December, 2018 and was last amended vide notification number 09/2021 – Central Tax, dated the 1^st May, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 305(E), dated the 1^st May, 2021.

FAQ :

The CBIC has rationalised the late fee for delayed GSTR-3B filings from 20th May 2021, introduced a conditional waiver for past periods, and set new capped late fees for future filings.

Yes, a conditional waiver is available for taxpayers who file their GSTR-3B returns for the period of July 2017 to April 2021 between 1st June 2021 and 31st August 2021. The late fee is capped at ₹500 if central tax is payable, or ₹250 if the central tax payable is nil.

For filings from June 2021 onwards, the late fee is capped at ₹250 for registered persons with nil central tax payable. For others, it's ₹1,000 for turnover up to ₹1.5 crores, and ₹2,500 for turnover between ₹1.5 crores and ₹5 crores.

Taxpayers with nil central tax payable have a ₹250 late fee cap. Those with turnover up to ₹1.5 crores (excluding nil tax cases) face a ₹1,000 cap, and those with turnover between ₹1.5 crores and ₹5 crores have a ₹2,500 cap.

The rationalisation of late fees and the new table for future filings are effective from 20th May 2021.

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