Arjun (Fictional Character): Krishna, a lot of chaos can be seen regarding the late fees relief for GSTR-3B that was earlier notified. What further simplification has been issued in such regard?

Krishna (Fictional Character): Arjuna, taxpayers can take a sigh of relief now, as a major relief to the GST taxpayers has been notified due to Corona. The government has decided to cap the maximum late fee for Form GSTR-3B at Rs. 500/- (five hundred only) per return for cleaning up past pendency of returns right from implementation of GST ; but subject to the condition that such GSTR-3B returns being filed before 30th September, 2020.


Arjun (Fictional Character): Krishna, such reduced late fees shall be applicable for returns pertaining to which period?

Krishna (Fictional Character): Arjuna, various representations were received to give further relief in late fee charged for the tax periods of May 2020 to July 2020, in addition to earlier provided relief for February 2020 to April 2020 and relief provided for cleaning up past pendency of returns from July, 2017 to January, 2020. The relief of maximum late fee for Form GSTR-3B at Rs. 500/- per return has been notified for the tax period July 2017 to July 2020 subject to the condition that such GSTR -3B returns being filed before 30th September 2020.

Arjun (Fictional Character): Krishna, what shall be the amount of late fees payable for late filing of GSTR-3B in case of NIL tax liability cases?

Krishna (Fictional Character): Arjuna, the Central Board of Indirect taxes and Customs (CBIC) has notified that there will be Nil late fees if there is no tax liability; and, if there is any tax liability then a maximum late fee of only Rs. 500 per return would be applicable to such GSTR-3B returns filed upto September 30. 

Arjun (Fictional Character): Krishna, what about taxpayers whose registrations have been cancelled due to non-filing of GST returns?

Krishna (Fictional Character): Arjuna, such taxpayers whose registrations have been cancelled due to non-filing of returns, may now apply for revocation of cancellation of their GST Registration and then file their pending returns by September 2020.  In the 40th GST Council meeting, an opportunity has been provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.

Arjun (Fictional Character): Krishna, what should the taxpayer learn from this?

Krishna (Fictional Character): Arjuna, this major abatement has been brought by CBIC as a uniform late fee is simpler in design and easier to implement on automated common portal. All the return defaulters for GSTR-3B who haven’t filed any of their returns from July 2017 to July 2020 can now take advantage of this relief by filing their GSTR-3B now as a stich in time, saves nine! On the contrary, the disappointment still continues for those taxpayers who have already paid late fees for the past periods. No clarification in such case has been issued yet. Further relief to Composition taxpayers for filing GSTR 4 needs to be clarified.

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  1. Prasan Kumar says:

    It will be disadvantage to those who have paid late fees in thousands and have set right and have fallen in line. Government should treat everyone as equal. What about those late fees paid beyond Rs.500/- per return by others? Whether that will be made available in their electronic cash ledger?

  2. Mani says:

    Thanks for the article. Always only defaulters are given bouquet while persons adhere to the rules
    and regulations are given lathi charge.

    1. Prakash says:

      Thank you for the information, when they allowed for GST 3B Returns to update from July 2017, Is it allowed to file an aNNUAL Return (9 and 9c) without late fee and fine., Please clarify.

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November 2020