AMNESTY SCHEME FOR GST LATE FEES & RATIONALISATION OF LATE FEES FOR SMALL TAXPAYERS- GST COUNCIL DECIDES IN 43rd MEETING
On 28th May, 2021, the 43rd meeting of GST Council took place in New Delhi which made various decisions including announcement of relief to small taxpayers from GST late fees. An amnesty scheme has been announced for GST late fees for pending returns which is a welcome step from the GST Council and will certainly bring some relief in the present Covid-19 pandemic.
Amnesty Scheme for GST Late fees of pending returns
To provide relief to taxpayers, late fees for non-furnishing of FORM GSTR-3B has been reduced/ waived as under for the tax periods July 2017 to April 2021:
|
Case where GST late fees reduced |
Maximum GST Late Fees payable |
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In case of ‘Nil’ GSTR-3B for July 2017 to April 2021 |
GST late fees capped to a maximum of Rs. 500/- per return (CGST Rs. 250 & SGST Rs. 250) |
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In case of GSTR-3B other than ‘Nil’ returns for July 2017 to April 2021 |
GST late fees capped to a maximum of Rs. 1000/- per return (CGST Rs. 500 & SGST Rs. 500) |
Note: Please note that the benefit of reduced late fees is available only when returns for these periods are furnished between 01-06-2021 to 31-08-2021
Rationalization of GST Late Fees for taxpayers
Presently, the taxpayers are required to pay late fees up to Rs. 50 per day on delayed filing of GST returns which causes an undue hardship for the taxpayers. Therefore, in the 43rd meeting of GST Council, it has been decided to rationalize the GST Late Fees to remove undue hardship on small taxpayers as follows:
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Category of taxpayer |
Late Fees for delayed furnishing of GSTR-3B & GSTR-1 |
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For taxpayers having nil tax liability in GSTR-3B or nil outward supplied in GSTR-1 |
Late Fees capped to maximum Rs. 500 per return (Rs. 250 CGST + Rs. 250 SGST) |
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For other taxpayers: For taxpayers having annual aggregate turnover (AATO) in preceding year up to Rs. 1.5 crores |
Late Fees capped to maximum of Rs. 2000 per return (Rs. 1000 CGST + Rs. 1000 SGST) |
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For other taxpayers: For taxpayers having annual aggregate turnover (AATO) in preceding year between Rs. 1.50 crores to Rs. 5 crores |
Late Fees capped to maximum of Rs. 5000 per return (Rs. 2500 CGST + Rs. 2500 SGST) |
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For other taxpayers: For taxpayers having annual aggregate turnover in preceding year above Rs. 5 crores |
Late Fees capped to maximum of Rs 10,000 per return (Rs. 5,000 CGST + Rs. 5,000 SGST) |
|
Category of taxpayer |
Late Fees for delayed furnishing of GSTR-4 by Composition taxpayers |
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Composition dealers in case of ‘Nil’ liability in FORM GSTR-4 |
Late Fees capped to maximum of Rs. 500 per return (Rs. 250 CGST + Rs. 250 SGST) |
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In other cases of filing of FORM GSTR-4 by Composition dealers |
Late Fees capped to maximum of Rs. 2,000 per return (Rs. 1000 CGST + Rs. 1000 SGST) |
Further, Late Fees payable for delayed furnishing of FORM GSTR-7 is also reduced to RS. 50 per day (Rs. 25 CGST + Rs. 25 SGST) and also capped to a maximum of Rs. 2000 per return (Rs. 1000 CGST + Rs. 1000 SGST).
Please note that all the above proposals are made applicable for the prospective tax periods.
Detailed Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1722578
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