Penal Provisions For Non-Filing / Late Filing of GST Returns

Goods and Service Tax return filing has created much of the cries amongst the trade and the industry. Due to the complications involved in the return filing process and the technical issues involved in filing the online return under GST, the Government has reduced the late fee for non-filing / late filing as compared to the basic provisions contained under the Act.

Present article highlights the basic provisions of the late fee as contained under section 47 of the Central Goods and Service Tax Act, 2017 and the current position thereon.

Basic Provisions Of Late Fee As Per Section 47 –

Basic late fee provisions for levy of the late fee in case of non-filing / late filing of GST returns are contained in section 47 of the Central Goods and Service Tax Act, 2017. As per provisions of section 47, in case the registered person fails to furnish the required return, the person shall be liable to pay the late fee of INR 100 for every day during which such failure continues. The total amount of late fee payable would be INR 200 for every day (INR 100 CGST and INR 100 SGST). The maximum amount of late fee is subject to INR 5,000.

Further as per section 47 (2), in case the registered person fails to furnish annual return as required under section 44, the person shall be liable to pay the late fee of INR 100 for every day during which such failure continues. The total amount of late fee payable would be INR 200 for every day (INR 100 CGST and INR 100 SGST). The maximum amount of late fee is subject to an amount calculated at 0.25% of his turnover in the State or Union territory.

Current Applicable Late Fee For Non-Filing / Late Filing Of GST Returns –

Late Fee For Non-Filing / Late Filing Of GSTR-1 –

As per notification no. 4/2018 – Central Tax dated 23^rd January, 2018, the late fee payable for any registered person for failure to furnish the details of outward supplies for any month / quarter in FORM GSTR-1 shall be INR 25 for every day during which such failure continues. The total amount of late fee payable would be INR 50 (INR 25 CGST and INR 25 SGST).

Further, in case there is no outward supplies in any month / quarter i.e. in case of NIL return late fee payable would be INR 20 (INR 10 CGST and INR 10 SGST) for every day during which such failure continues.

Late Fee For Non-Filing / Late Filing of GSTR-3B –

As per notification no. 64/2017 – Central Tax dated 15^th November, 2017, the late fee payable for any registered person for failure to furnish the return in FORM GSTR-3B for the month of October, 2017 shall be INR 25 for every day during which such failure continues. The total amount of late fee payable would be INR 50 (INR 25 CGST and INR 25 SGST).

Further, in case the total amount of central tax payable is NIL i.e. in case of NIL return late fee payable would be INR 20 (INR 10 CGST and INR 10 SGST) for every day during which such failure continues.

Late Fee For Non-Filing / Late Filing Of GSTR-4 (Composition Scheme)–

As per notification no. 73/2017 – Central Tax dated 29^th December, 2017, the late fee payable for any registered person for failure to furnish the return in FORM GSTR-4 shall be INR 25 for every day during which such failure continues. The total amount of late fee payable would be INR 50 (INR 25 CGST and INR 25 SGST).

Further, in case the total amount of central tax payable is NIL i.e. in case of NIL return late fee payable would be INR 20 (INR 10 CGST and INR 10 SGST) for every day during which such failure continues.

Late Fee For Non-Filing / Late Filing Of GSTR-5 (Non-Resident Foreign Taxable Person)

As per notification no. 5/2018 – Central Tax dated 23^rd January, 2018, the late fee payable for any registered person for failure to furnish the return in FORM GSTR-5 shall be INR 25 for every day during which such failure continues. The total amount of late fee payable would be INR 50 (INR 25 CGST and INR 25 SGST).

Further, in case the total amount of central tax payable is the said return is NIL i.e. in case of NIL return late fee payable would be INR 20 (INR 10 CGST and INR 10 SGST) for every day during which such failure continues.

Late Fee For Non-Filing / Late Filing of GSTR-5A –

As per notification no. 6/2018 – Central Tax dated 23^rd January, 2018, the late fee payable for any registered person for failure to furnish the return in FORM GSTR-5 shall be INR 25 for every day during which such failure continues. The total amount of late fee payable would be INR 50 (INR 25 CGST and INR 25 SGST).

Further, in case the total amount of integrated tax payable is the said return is NIL i.e. in case of NIL return late fee payable would be INR 20 (INR 10 CGST and INR 10 SGST) for every day during which such failure continues.

Late Fee For Non-Filing / Late Filing Of GSTR-6 (Input Service Distributor) –

As per notification no. 7/2018-Central Tax dated 23^rd January, 2018, the late fee payable by the registered taxable person for failure to furnish the return in FORM GSTR – 6 shall be INR 25 for every day during which such failure continues. The total amount of late fee payable would be INR 50 (INR 25 CGST and INR 25 SGST).