Late fee capped at Rs. 500/- for each GSTR-3B Return

In a major relief to the GST taxpayers. the government has decided to cap the maximum late fee for Form GSTR-3B at Rs. 500/- (five hundred only) per return for the tax period July 2017 to July 2020 subject to the condition that such GSTR-3B returns being filed before 30th September 2020.

A notification has been issued to provide for nil late fees if there is no tax liability: and, if there is any tax liability then a maximum late fee of Rs. 500 per return would be applicable to such GSTR-3B returns filed upto 30th September 2020.

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. Also, a uniform late fee is simpler in design and easier to implement on automated common portal. So the late fee is capped at Rs. 500/- only per return. if filed before. 30th September 2020.

Extract of Tweet by GST Tech – @Infosys_GSTN on 01st July 2020

Please note- The change in late fee amount made vide notification no. 57/2020 dated 30-06-2020 has been incorporated on the GST portal. Late fee paid in excess than prescribed in the notification shall be re-credited in due course.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Notification No. 57/2020–Central Tax

New Delhi, the 30th June, 2020

G.S.R. 424(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), read with section 148 of 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 31st 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 31st December, 2018, namely :–

In the said notification, after the third proviso, the following provisos shall be inserted, namely: –

“Provided also that for the class of registered persons mentioned in column (2) of the Table of the above proviso, who fail to furnish the returns for the tax period as specified in column (3) of the said Table, according to the condition mentioned in the corresponding entry in column (4) of the said Table, but furnishes the said return till the 30th day of September, 2020, the total amount of late fee payable under section 47 of the said Act, shall stand waived which is in excess of two hundred and fifty rupees and shall stand fully waived for those taxpayers where the total amount of central tax payable in the said return is nil:

Provided also that for the taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year, who fail to furnish the return in FORM GSTR-3B for the months of May, 2020 to July, 2020, by the due date but furnish the said return till the 30th day of September, 2020, 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 and shall stand fully waived for those taxpayers where the total amount of central tax payable in the said return is nil.”.

2. This notification shall be deemed to have come into effect from the 25th day of June, 2020.

[F. No. CBEC-20/06/08/2020-GST]
PRAMOD KUMAR, Director

Note : The principal notification No. 76/2018-Central Tax, dated 31st December, 2018 was published in the Gazette of India, Extraordinary, vide number G.S.R. 1253(E), dated the 31st December, 2018 and was last amended vide notification number 52/2020–Central Tax, dated the 24th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 405(E), dated the 24th June, 2020

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13 Comments

  1. Rewathi Shetty says:

    Sir I paid my gst for lady 15 months together on 1.10.2020. But late fees charged to me is Rs.10000 pm.
    What if I had paid monthly would I have been chargef

  2. Chethan says:

    Dear sir I we registered a gst on 2019 APR till date I didn’t file NILL RETURN, right now I want to KNOW the penalty amount can help me on this. What is the Penalty amount per day

    1. Dilip Chatterji Advocate Tax Consutant says:

      I filed returns in 3B snd GDTR-1 for the back periods from July 2017 to Jan 2020 after noon today when portal of GST got updated

      1. sagar soni says:

        what about ITC?
        as per law wordings ITC relating to 2017-18, 2018-19 has already been lapsed. how can we take ITC during filling the returns.
        wordings are.
        A registered person shall not be entitled to take input tax credit in respect of any
        invoice or debit note for supply of goods or services or both after the due date of furnishing
        of the return under section 39 for the month of September following the end of financial year
        to which such invoice or invoice relating to such debit note pertains or furnishing of the
        relevant annual return, whichever is earlier.

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