Section 47 and 50 of CGST Act, 2017 deals with the late fee and interest payable under the CGST Act respectively. The Government introduced some amendments in Section 47 of CGST Act, 2017 to benefit the taxpayers by reducing the maximum cap of late fee. Here in this article, we will deliberate about the recent amendments in the CGST Act related to Late Fee, and Interest.
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Late Fee for non-furnishing of GST Returns
Sec 47 of the CGST Act, 2017 contained the provisions related to levy of a late fee for the register person who fails to file the returns within time or due dates as required. Late fee given under this Section is as follows:
| Late Fee for failing to furnish details of Outward or Inward Supplies, Monthly Return or Final Return | Late Fee for failing to furnish the Annual Return |
| One hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees. | One hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory, where he is registered. |
| By Notification No. 64/2017– Central Tax, dated 15th November, 2017 the government reduced the amount of late fees for filing of Form GSTR- 3B for the month of October, 2017 onwards from Rs. 100 to Rs. 25 per day and in case of NIL return from Rs. 100 to Rs. 10 per day.
By Notification No. 04/2018– Central Tax, dated 23rd January, 2018 the government reduced the amount of late fees for filing of Form GSTR- 1 (for any month/quarter) from Rs. 100 to Rs. 25 per day and in case of no outward supplies from Rs. 100 to Rs. 10 per day. |
Recent Amendment in Section 47 of CGST Act, 2017
Recent Amendment in Sec 47 of the CGST Act, 2017 by Notification No. 19/2021 – Central Tax, dated 1st June, 2021 and Notification No. 20/2021 – Central Tax, dated 1st June, 2021 are as under:
Notification No. 19/2021 – Central Tax, dated 1st June, 2021
| Late fee payable under section 47 of CGST Act for the tax period June, 2021 onwards or quarter ending June, 2021 onward, who fail to furnish the details of outward supplies in FORM GSTR-3B by the due date: | |
| Class of registered persons | Amount |
| Registered persons who have a nil outward supply in the tax period | Two hundred and fifty rupees |
| Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year | One thousand rupees |
| Registered persons having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year | Two thousand and five hundred rupees |
| For taxpayers having an aggregate annual turnover in the preceding year above Rs. 5 crores, late fee to be capped to a maximum of Rs. 5000 under Sec 47 same as earlier. | |
| Late fee for non-furnishing FORM GSTR3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: – | |
| 1. Late fee capped to a maximum of Rs. 250/- for taxpayers, who did not have any tax liability for the said tax periods; | |
| 2. Late fee capped to a maximum of Rs. 500/- for other taxpayers; | |
| The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021. | |
Notification No. 20/2021 – Central Tax, dated 1st June, 2021
| Late fee payable under section 47 of CGST Act for the tax period June, 2021 onwards or quarter ending June, 2021 onward, who fail to furnish the details of outward supplies in FORM GSTR-1 by the due date: | |
| Class of registered persons | Amount |
| Registered persons who have a nil outward supply in the tax period | Two hundred and fifty rupees |
| Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year | One thousand rupees |
| Registered persons having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year | Two thousand and five hundred rupees |
| For taxpayers having an aggregate annual turnover in the preceding year above Rs. 5 crores, late fee to be capped to a maximum of Rs. 5000 under Sec 47 same as earlier. | |
Extract of Section 47 of CGST Act, 2017
Sec 47 of CGST Act: Levy of late fee
(1) Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.
(2) Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory.
Interest on delayed payment of GST
Sec 50 of CGST Act, 2017 attract in case of delay in furnishing of GST Returns in addition to the late fee. Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof, or claim excess of input tax credit or excess reduction in output tax liability shall have to pay the interest along with GST. Interest rates are as under below:
| A person liable to pay tax fails to pay the tax or any part thereof within the period prescribed | 18%
for the period for which the tax or any part thereof remains unpaid |
| A taxable person who makes an undue or excess claim of input tax credit or undue or excess reduction in output tax liability | 24%
on such undue or excess claim or on such undue or excess reduction |
Notification No. 18/2021 – Central Tax, dated 1st June, 2021
| Taxpayers having an aggregate turnover of more than rupees 5 Crores in the preceding financial year | |
| March, 2021 | 9% for the first 15 days from the due date and 18% thereafter |
| April, 2021 | |
| May, 2021 | |
| Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year | |
| March, 2021 | Nil for the first 15 days from the due date, 9% for the next 45 days, and 18% thereafter |
| April, 2021 | Nil for the first 15 days from the due date, 9% for the next 30 days, and 18% thereafter |
| May, 2021 | Nil for the first 15 days from the due date, 9% for the next 15 days, and 18% thereafter |
| Taxpayers who are liable to furnish the return as specified under sub-section (2) of section 39 (For Composition Levy under section 10 of CGST Act) | |
| Quarter ending March, 2021 | Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter |
Extract of Section 50 of CGST Act, 2017
Sec 50 of CGST Act: Interest on delayed payment of tax
- Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council:
[Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.]
- The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.
- A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty four percent, as may be notified by the Government on the recommendations of the Council.
Late fee for delay in filing FORM GSTR-3B waived/rationalizd
CBIC rationalize late fee for delay in furnishing of FORM GSTR-1
Late GST return : Interest rate lowered for March to May 2021
Author Bio
GSTR – 3B has been filed along with interest and late fees as calculated in the portal but now we are in receipt of notices for balance of the Late fees. How is it possible and what should be the course of action
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