Reduction and Rationalization of GST late fees based on turnover announced in 43rd GST council meeting

written by GST expert | May 29, 2021

43rd GST council meeting was held on 28.05.2021 wherein first amnesty scheme was announced for taxpayers who have not filed their GST returns and were not able to file their future GST returns because of same.

The amnesty scheme announced above was retrospective in nature and was applicable for returns upto April 2021 and along with same council has announced rationalization of late fees to keep an upper cap on late fees based on turnover to give some permanent relief to small taxpayer and the same is as under:

S. No. Type of return Aggregate annual Turnover of taxpayer in preceeding year Maximum late fees per return per tax period (in Rs.)
CGST SGST
1. Nil  tax liability- GSTR 3B Irrespective of turnover 250 250
2. Nil  outward supply- GSTR 1 Irrespective of turnover 250 250
3. Other than nil GSTR 3B

And GSTR 1

 Rs. 1.5 crore 1000 1000
4. More than Rs. 1.5 crore but less than Rs. 5 crore 2500 2500
5. More than Rs. 5 crore 5000 5000
6. GSTR 4 – if tax liability Nil Irrespective of turnover 250 250
7. GSTR 4 – if tax liability is not Nil Irrespective of turnover 1000 1000
8. GSTR 7 late fees Irrespective of turnover 1000 1000

Late fees for GSTR 7 has been reduced to Rs. 50 per day (i.e. Rs. 25 CGST and Rs. 25 SGST).

Do remember that all the above recommendation’s are proposal and will be applicable as and when notifications are issued and all will be prospective in nature as we have already received relief for GST returns of tax period till April 2021.

 

To download complete press release CLICK HERE.

To read the Press release CLICK HERE.