GST Notification No. 20/2021 – CT: Late Fee Rationalization

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Notification No. 20/2021 – Central Tax: Seeks to rationalize late fee for delay in furnishing of the statement of outward supplies in FORM GSTR-1.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i)]

G.S.R (E).— In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 4/2018– Central Tax, dated the 23^rd January, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 53(E), dated the 23^rd January, 2018, namely: —

In the said notification, after the fourth proviso, the following proviso shall be inserted, namely: —

“Provided also that the total amount of late fee payable under section 47 of the said Act for the tax period June, 2021 onwards or quarter ending June, 2021 onward, as the case may be, shall stand waived which is in excess of an amount as specified in column (3) of the Table given below, for the class of registered persons mentioned in the corresponding entry in column (2) of the said Table, who fail to furnish the details of outward supplies in FORM GSTR-1 by the due date, namely: —

Table

S. No. (1)	Class of registered persons (2)	Amount (3)
1.	Registered persons who have nil outward supplies in the tax period	Two hundred and fifty rupees
2.	Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year, other than those covered under S. No. 1	One thousand rupees
3.	Registered persons having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year, other than those covered under S. No. 1	Two thousand and five hundred rupees

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: The principal notification No. 4/2018-Central Tax, dated 23^rd January, 2018 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 53(E), dated the 23^rd January, 2018 and was last amended vide notification number 53/2020 – Central Tax, dated the 24^th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 406(E), dated the 24^th June, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 20/2021 – Central Tax

Q1: What is Notification No. 20/2021 – Central Tax about?

Answer:
Notification No. 20/2021 – Central Tax, issued on 1st June 2021, rationalizes late fees for taxpayers filing FORM GSTR-1 (statement of outward supplies). It introduces maximum late fee caps based on taxpayers’ turnover to reduce compliance burden. notfctn-20-central-tax-english-…

Q2: From which period does this late fee rationalization apply?

Answer:
The revised late fee structure applies from June 2021 tax period onwards or the quarter ending June 2021, depending on the filing category.

Q3: What is the late fee limit for taxpayers with nil outward supplies?

Answer:
For taxpayers with nil outward supplies, the maximum late fee is capped at ₹250 per return.

Q4: How much late fee is payable by small taxpayers (turnover up to ₹1.5 crores)?

Answer:
Taxpayers with turnover up to ₹1.5 crore need to pay a maximum late fee of ₹1,000 per return if filed late.

Q5: What about taxpayers with turnover between ₹1.5 crores and ₹5 crores?

Answer:
For this category, the maximum late fee is capped at ₹2,500 per return.

Q6: Does this notification provide full waiver of late fees?

Answer:
No ❌. The notification does not waive late fees completely but limits the maximum payable amount, making compliance more affordable for small and medium businesses.

Q7: How does this notification benefit small businesses?

Answer:
✅ Key benefits include:
Reduced financial burden on MSMEs.
Encouragement to stay GST compliant.
Relief from hefty late fee penalties.
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