GST Late Fee Reduced on GST Late Return filing : New Amnesty Scheme 

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After a long wait and a delay in GST return filing caused by complexity in GST return filing compliances, GST Council has capped the late fees on GST return filing in the 43rd GST Council Meeting which was held online. It is the first meeting of the GST Council in the financial year 2021-22. In this article, we will read about the GST Late Fee Reduced on GST Late Return filing: New Amnesty Scheme, which is beneficial to every taxpayer suffering from penalties regarding late fees for pending returns.

How Late Fees for GSTR-3B Calculate?

As we all know, GSTR-3B is an essential GST Return filing that every taxpayer should file even when there has been no business activity(Nil Return). The GSTR-3B is a combined summary return of inward and outward supplies filed quarterly.

However, many small businesses face multiple issues in filing GSTR-3B Return. Therefore, they have to suffer hefty late fees imposed by the government. Earlier,

  • The Late fees for GSTR-3B are Rs.10 per day for NIL returns &
  • The late fees are Rs.20 in other cases.

For instance, the Taxpayer has filed GSTR-3B for January 2020 on 28th February 2020, where the actual due date was 20th February 2018. Now, the number of late fees to be paid will become 10*8 (Rs. 80 for eight days of Nil liability return) and 20*8 (Rs.160 for eight days of tax liability return).

As we can see, the late fees become a significant amount as the cycle continues day by day till the filing of gst return.

Amnesty Scheme for providing relief to taxpayers regarding the late fee for pending GST returns 

The Government has decided in the 43rd GST Council Meeting to provide immense relaxation for the pending GST returns of GSTR-3B. Let’s look at the Amnesty Scheme in detail.

  • Taxpayers can avail of the benefits of this Amnesty Scheme on all GSTR 3B returns pending from July 2017 till April 2021.
  • The late fees are capped at only Rs. 500/- for nil returns for the period as mentioned above.
  • The late fees are capped at only Rs 1000/- for GST return carrying transactions.

In simple words, Taxpayers filing nil return of GSTR-3b will have to pay only Rs. 500/- and other taxpayers will have to pay only Rs. 1000/- for all the pending returns from July 2017 to April 2021. There will be no cyclic penalty charges such as 10 Rs. or Rs. 20 per day.

Important Note:  The relaxation of the Amnesty Scheme is applicable only from 01-06-2021 to 31-08-2021.  It means that Taxpayers shall get the relaxation if they file all pending GSTR 3B returns for July 2017 to April 2021 on or before 31st August 2021.

To conclude, we can say that this Amnesty Scheme is a massive opportunity to clear all the pending returns. Taxpayers should file GSTR-3b as soon as possible to avail the benefits before it gets too late again.

GST Council likely to declared an amnesty on delayed gst return filing

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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