The 43^rd Meeting of the GST Council was held on 28^th May 2021 in New Delhi. The following decisions were taken regarding waives or rationalization of late fee for pending returns and also for upcoming tax periods:

Relief to taxpayers in paying a late fee for pending returns: Amnesty Scheme

The relief provided to taxpayers by reducing/waiving of late fee for non-furnishing of form GSTR 3B for the tax periods July 2017 to April 2021 as under:

 

• For taxpayers having no tax liability for the said tax periods, a maximum late fee of Rs. 500 (Rs. 250 CGST + Rs. 250 SGST) to be charged per return.
• For other taxpayers, a maximum late fee of Rs. 1000 (Rs. 500 CGST + Rs. 500 SGST) to be charged per return.

 

These reduced rates of the late fee would only be applicable if GSTR-3B returns for the mentioned tax periods are furnished between 01.06.2021 to 31.08.2021.

 

Rationalization of the late fee as per section 47 of the CGST Act:

The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR- 1 to be capped, per return, as below:

1.For taxpayers having no tax liability in GSTR 3B or nil outward supplies in GSTR 1, the late fee is capped to Rs. 500 (Rs. 250 CGST + Rs. 250 GST).

 

2.For other taxpayers:

 

• Late fee capped to a maximum of Rs. 2000 (Rs. 1000 CGST + Rs. 1000 SGST) for taxpayers having Aggregate Annual Turnover (AATO) up to Rs. 1.5 crore in the preceding year
• Late fee capped to a maximum of Rs. 5000 (Rs. 2500 CGST + Rs. 2500 SGST) for taxpayers having AATO between Rs. 1.5 crore to Rs. 5 crores in the preceding year
• Late fee capped to a maximum of Rs. 10000 (Rs. 5000 CGST + Rs. 5000 SGST) for taxpayers having AATO above Rs. 5 crore in the preceding year

3.Late fee capped to Rs. 500 (Rs. 250 CGST + Rs. 250 SGST) per return for the delay in furnishing FORM GSTR-4 by Composition Taxpayers if there is no tax liability and to Rs. 2000 (Rs. 1000 CGST + Rs. 1000 SGST) per return for other composition taxpayers.

 

4.Late fee reduced to Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST) for the delay in furnishing FORM GSTR-7; maximum late fee capped to Rs. 2000 (Rs. 1000 CGST + Rs. 1000 SGST) per return, for the same.

 

COVID-19 related relief measures for taxpayers: Late Fee waived/ rationalized as under:

For small taxpayers (aggregate turnover up to Rs. 5 crores)

 

For March 2021 & April 2021 tax periods:

 

For tax periods QE March 2021 and April 2021, a late fee has been waived for the delay in furnishing FORM GSTR-3B for 60 days and 45 days respectively, from the due date of furnishing FORM GSTR-3B.

 

For May 2021 tax period:

 

For the tax period of May 2021, the late fee has been waived for the delay in furnishing FORM GSTR-3B for 30 days from the due date of the same, for taxpayers filing monthly returns.

 

For large taxpayers (aggregate turnover more than Rs. 5 crores)

 

The late fee has been waived for the delay in furnishing FORM GSTR-3B for 15 days from the due date for the tax period of May 2021.