In the 40th GST council meet, various relaxations were provided for taxpayers under GST. The one which tops the list, would certainly be waiver of late fees entirely for nil GSTR 3B returns for an extensive past period. This will almost the late fee to an insignificant amount even if no returns were filed since GST registration. Hence, it is certainly an opportune to avail.

Have a look at the relaxations that has been provided below:

1. Reduction in late fee for past defaults in filing GST returns

In the 40th GST council meeting, it is proposed that late fee for not furnishing GSTR 3B shall we reduced*/waived off#, if the returns are filed between 01st July 2020 to 30th September 2020.

*reduced to Rs. 500/per return, in case there is any tax liability

#reduced to Nil, i.e. completely waived off, in case of Nil GSTR-3B

2. Reduction in interest rates

Small taxpayers, i.e. those having turnover up to Rs 5 crores could avail benefit of reduced 9% interest rate in late payment of tax up to 30-09-2020 for supplies effected in the month of February, March & April

3. No interest or late fees

For taxpayers having aggregate turnover up to Rs. 5 crores, there would be a waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020

4. One -time extension in period for seeking revocation of cancellation of registration:

An opportunity is also being given to restore the cancelled GST registration by applying for revocation of cancellation of registration up to 30.09.2020 in all cases where registrations have been cancelled till 12.06.2020. This is an extended period & gives a restoration window to those who couldn’t get the GSTIN restored in time.

Earlier, similar kind of blanket waiver of late fees was extended to companies & LLP for filing their past returns, have a look at it here

Disclaimer: The above post is only for the purpose of academic discussion and should not be construed as any legal opinion in any matter whatsoever.

The author is a CA in practice at Delhi and can be contacted at: E-mail: [email protected], Mobile: +91-9811741451

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Qualification: CA in Practice
Company: Abhinandan Sethia & Associates
Location: west delhi, New Delhi, IN
Member Since: 26 May 2018 | Total Posts: 39
I am a Practicing Chartered Accountant with over 5 years of professional service experience. My professional services experience include specialization in #GST compliance #Risk based Internal Audits #Risk Management, #business process reviews, #Fraud Investigations etc. among other services View Full Profile

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  1. Manoj Kumar says:

    Dear Sir, Yours article has cleared that through this, Govt. has given an oppurtunity to taxpayers to give “Rebirth – Punar Janam” to their GST License.
    But,still a lot of confusion is there to those taxpayers ,who have already paid a good amount of penalty.Just before “Lock Down” i.e. 21.03.2020, I paid Rs.1,15,000/- penalty to get my GST Reurn on track.
    Is there any indication of goverrnment to refund the same.
    If So, my trillions of blessings would get dropped in the ballot box of Government.
    Thanks & Regards

  2. Narendra Hirekai says:

    Why late fees waiver notification ignores composition dealers ? why it is silent about late fees of delay filing of composition returns? Please clarify its applicability.

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March 2021