Dear professional colleagues,
A representation has been sent to CBIC requesting Waiver of late fees for non- filing of annual return ( GSTR-4) by composition dealers. We understand that many of your clients may be facing the same problem of non- filing of GSTR-4 due to which late fees would be levied on them. You may consider to submit a letter to CBIC on similar lines, in the interest of the small traders.
To
The Chairman (CBIC)
North block
New Delhi
Subject: Requesting for Waiver of late fees for non- filing of annual return ( GSTR-4) by composition dealers
Finance bill 2022 vide Clause no 100 has proposed to cancel GST registration of all composition dealers if their annual return not filed beyond 3 months of the due date of annual return, instead of 3 consecutive tax periods earlier.
Non Filing of annual return by composition dealers is liable for late fees as follows:
| Financial Year | Amount of late fees |
| 2017-18 | 10,000 |
| 2018-19 | 10,000 |
| 2019-20 | 2,000 |
For composition dealers there is no exemption in limit of turnover for filing annual return, as in case of dealers in normal regime are exempted from filing annual return, if their turnover is upto Rs 2 crore.
In view of proposed amendment, large number of composition dealers, who have not filed their annual return earlier on time, will come forward to file their overdue annual returns, and hence, will be liable to pay late fees upto Rs 22,000 for 3 years.
We hereby request for one time waiver of late fee for non-filing of annual returns by composition dealers for following reasons:
1. Composition dealers are small traders not able to afford cost of consultants, so filing their GST return with their little knowledge.
2. They are filing their GST returns and paying due tax regularly.
3. Late filing fees 22,000 for such small traders will be a big burden upon them.
4. Further cancellation of GST No. for non-filing of Annual return will further aggravate their problems.
5. Non-filing of Annual return by Composition Dealers has not, in any way, been prejudicial to the interest of revenue.
6. Proper officer of Composition Dealers should have been reminded Composition Dealers for non-filing of Annual Return.
7. The proposed amendment by finance bill 2022 if enacted in 2018 would not have created pendency in submission of annual return.
In view of above submissions, your good self is requested to waive late fees for all Composition Dealers as one time relaxation for better compliance.
Thanking you,
Yours sincerely,
XYZ
Author Bio
I have failed to file GSTR-4 for FY 2019-20 & FY 2020-21. In both the years, auto-populated penalty is Rs. 10,000/- each year. As per your article it should be Rs. 2,000/- only for each year. Kindly respond
Unable to file the annual return in Forrm-4 for 2021-22 because the return for 2018-19 to 2020-21 are not filed.The turnover of such composition dealers are less then 15 lakhs in each and every year. What we can do in such cirumstances.
Maina gstr4 annual return last 3 year not filed .what I should to wavior of late fees.my annual turnover is about 1600000 lakh. Due to not knowledge.selh
genuine request must be accept by CBIC
MAINE GSTR4 FY 2019-20 AND 2020-21 RETURN FILE PENALTY WAIVE OFF KA NAYA NOTIFICATION NAHI AYA HAI SIR
Same here sir, GST site shoes late fees of Rs.10,000/- for FY 2019-20 as well as 2020-21.
I have not filed GSTR 4 for last 3 years. I understand that you have made a representation to CBIC for waiver of additional fee. Please suggest whether we should deposit the additional fee or wait for the waiver.
We also not filled gstr-4 two years as per your ad 10000/ for 2019-20 Rs 2000/ 2020-2021 But auto populated site shows 10000/ each year . Please response.sir
Hope about waiver about penalty.It is big burden to small dealer
I have failed to file GSTR-4 for FY 2019-20 & FY 2020-21. In both the years, auto-populated penalty is Rs. 10,000/- each year. As per your article it should be Rs. 2,000/- only for each year. Kindly respond.