It is a surprising fact that taxpayers are finding GST Compliances complicated, and they are facing many difficulties in timely GST Return filing. As a result, the taxpayers have to face heavy penalties.
This fact was revealed when CA Ram Bajaj from Rajasthan filed an RTI to CBIC (Central Board of Indirect Taxes and Customs).
A reply by CBIC to this RTI shows that CBIC collects a GST Penalty of Rs. 1609 Crore. Let us look at this in detail.
Reply to RTI by CBIC
CA Mr. Ram Bajaj filed an RTI (Right to Information Act, 2005) to CBIC. It was to inquire about the total collection of penalties when taxpayers fail to file GST Compliances on time. Therefore, Central Public Information Officer (CPIO), Mr Rakesh Jain, replied to the RTI.
In the reply, the officer has given the necessary details of GST Penalty collection. This information of GST Penalty Collection is of the past four financial years (Till February 2021).
CBIC Collects GST Penalty worth Crores
The reply to RTI shows the following amounts CBIC Collects on penalties in the late filing of GST Compliances in India.
- Rs. 102 Crore For the financial Year 2017-18,
- Rs. 479 Crore For the financial Year 2018-19,
- Rs. 567 Crore For the financial Year 2019-20
- And Rs. 461 Crore For the financial Year 2020–21 (Till February 2021).
The total amount of collection is Rs. 1609 crores which is a considerable amount. This amount is the collection of only GST late filing penalties.
Furthermore, CBIC also collects penalties in case of failure to file GSTR-3B and other GST Returns.
Another Notification of CBIC Collection of GST Penalties
As per another reply to the RTI Application, The Central Board of Indirect Taxes and Customs reveals that the Government has received approximately Rs. 1,07,02,47,136/- towards the late fee of delay in filing GSTR-3B and other GST Returns in the last two years.
However, there is no data regarding the number of late fees collected from 2017 to 2019. It can be a significant amount too.
Therefore, we can conclude filing GST Returns on time is crucial for every taxpayer to avoid massive penalties.
Furthermore, if you need any assistance regarding GST Return filing or GST Registration on time or want to know more about steps to prevent GST Penalties, feel free to consult our business advisors at 8881-069-069
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