Late fees for GSTR- no late fees for GSTR 3B with nil tax liabilities

Late fees for GSTR 3B- During the COVID-19 pandemic, the government have given relief to small taxpayers by saying that there will be no late fees for GSTR 3B return, which has no tax liabilities and for the return with tax liabilities there will be maximum late fees of Rs. 500.

GST council meeting- On 12th June, the meeting of the GST council held with chairperson FM Nirmala Sitharaman. It was the 40th GST council meeting. In this meeting, the government gives benefits to small taxpayers by waiving late fees. In this meeting, The FM also decided not to increase GST rates on non-essentials items, despite the GST revenue loss due to nationwide lockdown. You can visit the GST website here.

Key highlights of 40th GST council meeting- Late fees for GSTR

No Late Fees- There will be no late fees for late filing of GSTR 3B return with no tax liability and which are pending from July 2017 to January 2020. It is only for those who filed there mentioned pending return from 1st July 2020 to 30 September 2020.

The maximum late fee is Rs. 500- However, for those having tax liabilities, there will be maximum late fees capped to Rs. 500.

Time period- The reduced rate of late fees would apply for all the GSTR 3B returns furnished between 01.07.2020 to 30.09.2020.

Interest rate cut- In the meeting, FM also gives benefit to assessee having the turnover less than Rs. 5 crores. Nirmala Sitharaman cut the interest rate on late submission of the return for the month of February, March, and April from 18% to 9%. It is only for those who filed a return from 6th July 2020 to 30 September 2020.

Small taxpayers (turnover up to Rs. 5 Crore) will not pay any interest for late furnishing of GST returns for the month of February, March, and April 2020 till 06th July 2020.

Small taxpayers (turnover up to Rs. 5 Crore) will provide a waiver of late fees and interest if they file the form GSTR 3B for the month of May, June and July 2020 by September 2020.

Restoration of GST Registration- Taxpayers can file for restoration of GST registration that has been cancelled till June 12, 2020, through a one-time extension being offered till September 2020.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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