Last updated: December 3rd, 2021 7:23 PM

Late Fee Reduction under GST 

For the first time, in the 40^th GST Council meeting held on 12^th June 2020, the council recommended late fee reduction/ waiver with respect to delay in filing Form GSTR-3B for the earlier period. The relief will help clear the backlog of returns and impart some working capital relief to the taxpayer in current pandemic situation. Interestingly, after the recommendation, several notifications and press release were done on the matter. The flow of the same, along with the final outcome, is being taken up in the present article.

The flow of notifications and press release done with respect to Form GSTR-3B Late Fee Reduction/ Waiver-

1. Recommendation done in 40^th GST council meeting-

The waiver / reduction of late fee, as recommended, for the delay in filing of Form GSTR-3B for the earlier period is tabulated hereunder-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	July 2017 to January 2020	NIL
Any other case	July 2017 to January 2020	INR 500 per return.

2. Notification No. 52/2020- Central Tax dated 24^th June 2020-

Based on the recommendation of the GST council, the following relief was notified vide notification no. 52/2020-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	July 2017 to January 2020	NIL
Any other case	July 2017 to January 2020	INR 250 per return.

As per the notification, the above relief is available only if the pending returns in Form GSTR-3B is filed between the period 1^st July 2020 to 30^th September 2020.

3. Notification No. 57/2020- Central Tax dated 30^th June 2020-

Late fee waiver/ reduction announced vide notification no. 57/2020, in case of the taxpayer having turnover up to INR 5 Crores in the preceding financial year, is-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	February 2020 to July 2020	NIL
Any other case	February 2020 to July 2020	INR 250 per return.

Late fee waiver/ reduction, in case the taxpayer having turnover more than INR 5 Crores in the preceding financial year, is-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	February 2020 to July 2020	NIL
Any other case	February 2020 to July 2020	INR 250 per return.

In both the above cases, relief is available only if the pending returns in Form GSTR-3B are filed by 30^th September 2020.

4. Press release dated 3^rd July 2020-

As per the latest press released by the Central Board of Indirect Taxes and Customs (i.e., CBIC), the maximum late fee payable has now been capped at INR 500 per return.

Final relief

Clubbing up all the above and updating the same with the latest press release in the matter, the late fee waiver/ reduction in case of Form GSTR-3B is as under-

Particulars	Tax period	Late fee payable
Cases, wherein, there is no tax liability (i.e., NIL return)	July 2017 to July 2020	NIL
Any other case	July 2017 to July 2020	INR 500 per return.

Importantly, the above relief of late fee waiver/ reduction is available only if the pending returns are filed by 30^th September 2020.