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ALL INDIA COUNCIL OF HUMAN RIGHTS

Ref: 008/2017-18     Dated: 21/10/2017

Automatically collecting of GST Late fees is against the GST Law

Central Government Must Stop Collecting GST Late Fees of Rs 200/- Per day & Need to Reverse the Late fees paid by the Traders of India.

The Traders of India faced huge difficulties in Filing GST returns for the Month of July and August 2017. On account of Technical system error, and failure of new Designed GST Website, they could not file GST returns within due date, many of them have wrote emails to Helpdesk of GST Council, but their mails were not answered. Now they are able to file those returns ( it seems now technical error is taken care by GST Council ) but they are FORCED to pay GST late FEES/PENALTIES for late filing the GST return, Why they shall pay penalties for inefficiency of GST Website.

However the Automatically collecting of GST Late fees is against the GST Law, because as per Section 46 of GST Act provide that, if a person failed to file return, the notice shall be issued to registered person for its failure to file the return asking him to furnish such return within 15 days In such form and manner as may be prescribed, and rule 68 Chapter VIII of CGST Rules 2017 provide that notice shall be issued in Form GSTR-3A.

And also it is against the Natural Justice to calculate the late fees on the Difference of days between, return after its submission and filling. Because as per the Act after creation of Tax Payment Challan there will be time to pay the Taxed through RTGS/NEFT – Counter, since there will be a delay of 1 or two days to file the returns. Therefore the calculation and levy of GST  late fees on this point also not Justifiable, As per the GST Act there will be no Provision to carry forward the previous month GST Late Fees and penalties into the Next Proceeding Months, which is calculating the same in September Returns.

Therefore this penalty in form of Late Fees is unconstitutional and unjustifiable. Hence request to drop the further Calculation of Late fees in GTS Website and reverse the penalty in the Traders Cash Ledger of GST Account, Therefore the filing of returns got delayed as the GST website system was not working properly and now the Government had held the traders responsible for the same by levy the GST late fees and GST penalty, which is against the Natural Justice.

Likewise we request to the Government of India to please Stop Collecting the Late fees and Reverse the paid GST late fees into the Account of Traders of India GST Cash Ledger.

We hope our Request is in Line and in Order, Kindly do the needful and oblige.

Thanking you, Best Regards.

Signature.

S.Zafarulla Khan.

District General Secretary.

All India Council of Human Rights Council, L&S Shimoga.

Download Above in PDF Format

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40 responses to “Automatically collecting of GST Late fees is against GST Law”

  1. Yohannan K.O says:

    As 90 % of business community do not possess any computer skill,the govt should have at first given sufficient time to understand the in and out of GST linked with computer knowledge before implementing it all of a sudden. A country like India can not be compared with Canada or such less populated country for adapting a new tax system like GST which can onot be digested by a common man in India. So it is better for the govt to stop all penal actions of GISTN for the mistakes of such business man atributable to the.delay in return filing and errors.The delay is mainly caused by the GSTIN system error itself. Hope the Govt will act

  2. shankar.P says:

    Because of unlawful implementation of late fee for GSTR 3B, people of india, loosen faith on existing Government & further they will definitely think on….

  3. FCA Devang says:

    Government is doing great job. Definitely going to win elections in Gujarat. What a great GST Law and what a fantastic implementation.!!!!

  4. CH TRIPATI PATRA says:

    Central government is collecting late fees from GST registered dealers forcibly even though the department and GSTN portal is not fully prepared. Also GSTR 3B return is a temporary and provisional which is not in GST Act earlier. Lot of confusion facing the tax professionals & dealers. Central Government is violating the rights of human beings after implementing GST horridly without adequate preparation.

  5. Shyam Lal Naik says:

    The levy is absolutely illegal. There should be adjudication before any penal action on tax payers.
    For me this is “BLACK MONEY” in the hand of the Government.
    Unfortunately, this Government id “DEAF”. Does not listen to any body.
    Is the GST call center equipped to answer legal queries?,
    Is there any possibility of roll back of this version of GST?

  6. meera says:

    I am also request for less the sep-17 late fees

  7. Mahesh Khatuwala says:

    Again the history repeats,
    all Indians “एक्जुट होकर आन्दोलन”
    now I think the last session for MODI government.

  8. Prashant says:

    Sir,
    You have raised very important issue…..
    Late fee levied is govt. is just unlawful.

    if they saying that 1 Nation , 1 Tax & 1 Bazaar then
    why penalties are two…… ? ( 200 per day for CGST & SGST) it should be only 100 Rs. per day, we are filing single return not separate for CGST & SGST … Kindly give your important opinion on this..

  9. Golak Bihari Panigarhi says:

    Late fee should be levied immediately, because there is many dealers who migrated to GST but not comes under GST law, they have also to pay late fee against filing nil return. It is also request Govt. should give deadline to implement late fee.

  10. KAMALAKANNAN .J says:

    Its a cruelty to petty traders. It is a biggest torture. It is a punishment without giving a oppertunity .it is against natural justice. For a new law, new software, its time take at least 90 days to understand. Traders even not collected therir 1 st invoice amount. Out of pocket how they can pay taxes. GST compelled to take GST regn even for less than 5 lakh annual turnover snce no business will be given by ther clients. It is a big cruelty. I feel heart pain for these days. Previously told no penalty for two months. Its a big cheat. Worst of government activities

  11. Swaminathan V says:

    As rightly said, Government need to help and encourage people for filing their GST returns, instead of collecting additional levies by way of Interest, penalty. These things should be waived for atleast one year. Are the Government paying Interest / penalty to any of us for their deficiency.

    Gov should focus on right way of Implementation / helping the people, rather than stop questioning the dealers. Till date for even small clarifications sought for, there is no remedy / answer available immediately with the department.

  12. Vijay Kumar says:

    Has the GST site been working without any break?. Has the Government not amended the GST law in the past 112 days.
    Automatic collection of penalty, where people are not having the knowledge of law, where people can not work on Computers etc. are all undesirable.
    Let a hundred people of clerical, 50 people of officer level,100 people with education up to class 8th, 50 senior citizens( at least Matric), 50 old people ( above 68 years of age) be identified, they may be asked to learn the GST law, filing of different returns. Thereafter, these people be asked to appear in an exam, conducted by Government, and let them show their worth. Those who pass the examination be rewarded.
    This will create jobs for those, who have passed the exam, and will let the Government know if people are fit to work under GST.
    Alternatively, let the staff of Excise, Sales Tax departments be provided Lap Top, a Chair and a table etc., in a Bank branch for every 100 registered dealers, and let dealers approach them at at bank between 9 AM to 6 PM, and the returns be filed by these Departmental employees, free of cost.

  13. Vijay Kumar says:

    Very retrograde step by Government. Similar penalty/Late Filing fees in respect of late filing of return for TDS/TCS is another retrograde step.

  14. S CHANDRASEKAR says:

    Normally penalty will be equal to tax payable amount or some fixed amount whichever is lower. But in GST, even NIL return, we have to pay penalty amount to Government. It is very unfortunate situations to Traders. Government should stop late fee amount or should collect some fixed amount only.

  15. sathish b r says:

    as discussed about there is lot of problem is facing by gst filing there is not proper working of website and showing error and transition relief, gst migration filing gst 1 gst 2 improper updation made by the GST Team how can they collect the late fees even there is lot of problem is facing by the people, before intiating any updation they should give six month exemption of the late fee interest and other misc charges this realy shows unethical of the department

  16. Saurabh Agrawal says:

    Sir ,
    09ASEPA0184F1Z5 Cell No.9335072557 agrawalgarments123@gmail.com

    In my case I had applied in Composition Scheme but unfortunatelly alloted in regular but when I am filling 3B for July2017 and generating challan for pending dues it shows invalid Mobile No..I complained to Helpdesk ,twit to Modiji & Jaitelly Ji but till date problem was not short out . How can I file my all 3 months GSR3B ,GSTR1 ,GSTR2

  17. ABHIJIT MAJUMDAR says:

    but sir who will enforce Govt to stop collecting late fees automatically,Ld ALL INDIA COUNCIL OF HUMAN RIGHTS should approach to Supreme court against this practice,and this should be done for the common interest of general public ii this is done common public will be benefited.

  18. S THIAGARAJAN says:

    Again sometimes due to GST portal’s failure GSTR 3B could not be filed on the due date, the portal enabled/allowed only the next day to file the GSTR 3B. Charging of late fee for non filing on the due date due to GST portal’s deficiency in handling the returns filing process amounts to penalising the assessees for no fault of them.

  19. S MANOHARAN says:

    Sir
    Thanking you for your advise to the government.
    When the government software is not. they have no right to collect late fees. Please you may bring notice to the matter to the court and to the president .
    Thank you .

  20. anantha narayana b says:

    Late fee shall be levied & collected by the Govt,but from GSTN and not from the dealer,so that purpose of the levy i.e to penalise for delay and not to repeat the same is served.Since GSTN is solely responisble for this,it shall bear the loss caused to Govt.This will also ensure that GSTN gives atleast fairly reasonable service to users.

  21. NILESH KUMAR says:

    Sir,

    All thing is right but main matter your left.
    When wrong figure entered then laibility raise and it is compulsory to deposit the unexpected liability when form 3b submitted for the particular month.

    It is also creating problem if a person by mistake entered rs.500000/- instead of Rs.50000/- then for the purpose of submitting the return it is compulsory to pay the tax first then claim the return.

    The assessee facing the above problem till now pay july return therefore they will pay the penalty of august and september without any DEFALUT.

  22. GANDHI MOHAN BHARATI says:

    I have been maintaining that someone is working hard to ensure Modiji does NOT return to power in 2019. Hope he realizes.

    Anyway the Govt seems bent onliquidating all honest tax payers and let off Big Fish with statement “Law will take its own Course”

    Which big fish has ever faced punishment during its life time !!!!.

  23. SYLVIA FRANCIS says:

    Thank you for addressing this issue. I wound up paying late fees for Aug for precisely the same reason. Unable to log in from Sep 18-20 to meet Sep 20 deadline due to System Error, I was able to do so only by Sep 25 & wound up paying Rs.1500 late fees for a tax amount of Rs.2,078 paid as early as Aug 08!!!

  24. NITIN GANDHI says:

    sir , we agree with your above statement we do not understand, why govt. has charging Late fees for which crime ?

    if a Taxpayer is submitted GSTR-3B on or before 20th day of susequent months and he also disclose his actual liability but he could not able to pay taxes on time due to financial crises or any other reason then also the taxpayer is ready to pay interest for the delay . it means that taxpayer has not lost a single rupee of the government

    on the other hands , taxpayer has also submit the information on time i.e before 20th day

    Late fees is to be charge at a single point after filling of GSTR-3B, GSTR-, GSTR-2 & GSTR-3
    after the hearing of the taxpayers

  25. balasubramanian m says:

    Also if late fee is applicable, we could either edit the submitted form or provision to resubmit or modify the submitted GSTRs.

    Being GSTR 3B was wrongly submitted we could not finally file the return and late fee accrues.

    It is really injustice.

  26. KARUNAKAR TOTA says:

    There is peculiar case of charging of Late Fee. The assessee filed Trans1 claiming Credit for VAT credit as per June, 2017 VAT Return. After filling up all the details in Trans 1 form in the form on portal when the SUBMIT button was clicked, it gave a message as ” System Error”. The same continued till several weeks. The assessee was help less and kept quite and left an e-mail on the help desk. The problem remain unresolved. Mean while the last date for GSTN-3B for August approaced. Hence the assessee tried to submit it. But the portal shown message that — GSTR-3B cannot be filed unless the Trans1 filled up is Submitted. Under these circumstances, the assessee could not be file the GSTR-3B. The the local GST authority informed the tax consultant of the assessee, that such TRANS 1 problems can be brought to his notice. On approaching the authority, the problem was solved and TRANS 1 was submitted. Now the assessee proceeded to SUBMIT the GSTR 3B. But the portal is showing a late fee of 2600 + 2600. This is for no fault of him. He could not file the GSTR 3B only because of system error for TRANS1
    Now what the assessee shall do ; If he makes any further delay the Late Fee will be increased @ 200 per day.

  27. SANDESH SHIVAJI SHELAR says:

    AS CONCERN ABOUT GSTR 3B THE 3B RETURN SHOULD ALSO MUST GET OPTION TO REVISE AS THERE IS NO OPTION FOR REVISE 3B MANY ARE GETTING PROBLEMS . AS CONSIDERATION GSTR 3B SHOULD GET REVISE FEATURE FOR FURTHER

  28. Vishal Dhiran says:

    In the eyes of government all taxpayers are theft and all minister are honest. Government work as Tanashahi like Hitler.

  29. SUMIT PODDAR says:

    Its just shameful dead of this government. Even after press release by the government of india the are collecting this horrifying penalty . GST has now become a nightmare for us .

  30. Nimmala Sheshadri says:

    It is very good. The internal rules made by the GSTN, for filing the returns, as a mediator, is in cotravention of the Provisions of the GST Law, the late fees due to the in-efficiency of GSTIN Network. Because of In-efficiency, late fee born by the All Assessee should be reimbursed by the GSTIN, or GSTIN should make good the loss caused to the Stake Holders. Even, we had faced the problem after submitting the GSTR-3B and before filing the Return. This is the technical issue of GSTIN, for many days. For this too the GSTIN should make good for the loss caused to the Stake Holders (Dealers). There is very high time of waiting when we call to the Call Center around 15 minutes to Half an Hour. If the GSTIN contractor is not able to support to the Department, the Department should arrange another software Provider instead of or along-with the exiting GSTIN.
    To conclude the internal software rules made for filing GST Returns are contrary to the GST Act, which are void ab initio, due to which the stake holders had forced to pay late filing fee, hence the GSTIN should make good for the same. If the GSTIN is alone not competent to provide the services, the Government should look for alternative support vendor such as Sify or Other Competitor.
    Regards
    CS Sheshadri Nimmala
    Company Secretary(CP Number 12626).
    9441631324.

  31. BABU- bangalore says:

    It seems that tax payers are transacting with some PRIVATE BANKS,who debit our account without any pre intimation….

  32. Krishna Kumaran Nair.T.R says:

    Since GST being a new legislation and its implementation being in a mess initially and more or less continues to be so even now, it is the inherent right of the affected persons, to be not inflicted with late fee, penalty etc during the initial months. The business community and the practitioners are slowly getting accustomed to the technicalities of GST e-filing and therefore to render natural justice to them , the late fee should be waived at least for initial 3 months.

  33. Jain says:

    Absolutely! We have paid 6400 as late fee and 900 as gst for a particular month because of the submit / file confusion. Even though government has to impose strict action for implementation of gst, time needs to be given to the tax payers to understand the process. The intention of the tax payers who have paid tax and submitted the return before the due date was in the right place and the late fee was only imposed for not filing. Tax payers who have made the payment and submitted the return need to be spared from this atleast. Small businesses are literally paying off all their profits and above. It is both discouraging and disappointing. Reading the above it seems it’s not only unfair but also not as per the law. We urge the government to return the late fee paid.

  34. samit chakraborty says:

    Late Fees should be waived till September, because GST website not working properly.Regularly they are changing and upgrade website.Who have opted for composition earlier suddenly without any reason they are converted in regular.After complain no answer.

  35. SUNIL PATEL says:

    Good effort by ALL INDIA COUNCIL OF HUMAN RIGHTS i think this government run only on non budget penalty Income of small traders. I think ICAI , ALL INDIA TAX FEDERATION, AND ALL TAX PRACTITIONER ASSOCIATION OF INDIA SHOULD GO NON CO-OPERATION STRIKE FOR SOLVE EVERY MONTH GST LATE FEE PROBLEM WE SHUT DOWN OUR OFFICE AND STOP WORKING OF EVERY TAX LAW.. FRIENDS RECALL YOUR MEMORY WHEN TRANSPORTER HAVE PROBLEM THEY GO ON STRIKE IN ALL INDIA AND BAND THE GOVERNMENT IN ONLY 5 TO 7 DAYS. WE TAX PRACTITIONER ARE SPINE OF ECONOMY IF WE UNITE AND FIGHT FOR OUR PROBLEM I AM SURE GOVERNMENT WILL BAND IN 3 TO 5 DAYS AND ACCEPT OUR ALL DEMAND

  36. CA R. J. Kalantri, Nashik says:

    For late filing of GSTR 3B no penalty should be levied. As this is additional burden cast on the dealer to file GSTR 3B as system to file GSTR 1, 2, 3 etc. is not still up dated. If system was proper dealer were not suppose to file GSTR 3B. This is also initial period of GST people should not be harrashed with penalties. Penalty for GSTR 3B should be waived completely for all the months.

  37. CA R. J. Kalantri, Nashik says:

    No late fee should be levied for GSTR 3B returns. Because this is additional return which dealer is forced to file due to system problem. If the system was proper dealer was not supposed to file GSTR 3B return only he has to file GSTR1, 2, 3 etc…Hence total penalty should be waived. Also according to me instead of filing of GSTR 3B only payment should be made from the dealer within due date. If Govt. does not agree for filing of GSTR 3B, it should be filed without penalty.

  38. R.K.GUPTA says:

    This is good question having all logical reasons for refund of penalty of Late GST deposit. My submission is that this money should not only be refunded to all tax payers but be recovered from the officers salary who are responsible for such inefficient system knowing that capacity and rush at last hour. Govt can not ask for filing on different dates. The system be developed in such a way that in case all assessees wish to file return on last day, it should work smoothly.
    R.K.GUPTA
    FARIDABAD

  39. ANAND NIPPANI says:

    TO ENCOURAGE TAX PAYERS, TO UPDATE KNOWLEDGE OF GST PROVISION, PENALTY IN THE FORM OF LATE FEE BE WAIVED IMMIDIATELY.TECHNICAL ERROR OF GST PORTAL,WHICH HAS CAUSED LATE FILING OF RETURN, BE FIRST,BE, UPDATED AND STEP BY STEP,PROCEDURE BE IMPLEMENTED,SO THAT,MISTAKES CAN BE MINIMISED.DONT,STAB TAX PAYERS,WHO ARE THE BACK BONE OF EXCHECKER.

    • Yohannan K.O says:

      GST system is really a harassment for the business community, Most of these community are illiterate in computer system. But GST returns and and filing system can not be followed by such people as govt expects them to be like a Canadian business man..Hense the penal actions against such traders for late filing should be stoped to encourage them to continue in business.. The late filing is mainly due to system error and the ignorance of the trader.

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