Important Keywords: Notification No. 23/2024 – Central Tax: Seeks to provide waiver of late fee for late filing of NIL FORM GSTR-7, Section 128 CGST Act 2017, NOTIFICATION No. 23/2024–Central Tax,
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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
New Delhi, dated the 8th October, 2024.
Notification No. 23/2024 – Central Tax: Seeks to provide waiver of late fee for late filing of NIL FORM GSTR-7
S.O (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), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number
G.S.R. 366(E), dated the 1 June, 2021 (No.22/2021-Central Tax), except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendations of the Council, hereby waives the amount of late fee payable under section 47 of the said Act by any registered person, required to deduct tax at source under the provisions of section 51 of the said Act, for failure to furnish the return in FORM GSTR-7 for the month of June, 2021 onwards, by the due date, which is in excess of an amount of twenty-five rupees for every day during which such failure continues:
Provided that the total amount of late fee payable under section 47 of the said Act by such registered person for failure to furnish the return in FORM GSTR-7 for the month of June, 2021 onwards, by the due date, shall stand waived which is in excess of an amount of one thousand rupees:
Provided further that the total amount of late fee payable under section 47 of the said Act by the registered person, who fails to furnish the return in FORM GSTR-7 for a month by the due date, where the total amount of central tax deducted at source in the said month is nil, shall stand waived.
2. This notification shall come into force on the 1st day of November, 2024.
[No.CBIC-20006/20/2023-GST]
(Raghavendra Pal Singh)
Director
Frequently Asked Questions (FAQs)
Q1: What is Notification No. 23/2024 – Central Tax about?
Answer: Notification No. 23/2024 – Central Tax, issued by the Ministry of Finance (CBIC) on October 8, 2024, provides a waiver of late fees for delayed filing of NIL FORM GSTR-7. This waiver is applicable to taxpayers required to deduct tax at source (TDS) under section 51 of the CGST Act, 2017, ensuring relief from unnecessary penalties. The notification takes effect from November 1, 2024.
For expert GST compliance solutions, visit: Finodha GST Compliance.
Q2: What is FORM GSTR-7, and who needs to file it?
Answer: GSTR-7 is a monthly return form that needs to be filed by registered persons required to deduct tax at source (TDS) under section 51 of the CGST Act. This includes:
Government departments, local authorities, and notified entities making payments under a contract where TDS is applicable.
Deductors who need to report TDS details, claim TDS credits, and deposit deducted tax.
If you need help with GST return filing, check out: Finodha GST Return Filing.
Q3: What does the late fee waiver mean for taxpayers?
Answer: The notification ensures that:
If FORM GSTR-7 is not filed by the due date, the late fee is capped at ₹25 per day.
The total maximum late fee is restricted to ₹1,000 per return.
For NIL GSTR-7 returns (where no TDS is deducted), the entire late fee is waived.
This change reduces the compliance burden and prevents excessive penalties.
For seamless GST TDS compliance, consult a GST expert at: Finodha GST Experts.
Q4: What was the previous rule for late fees on delayed GSTR-7 filing?
Answer: Before Notification No. 23/2024 – Central Tax, the late fee under Section 47 of the CGST Act was ₹200 per day (₹100 CGST + ₹100 SGST) without any cap. This created a significant penalty burden, especially for entities filing NIL returns.
The new amendment reduces late fees and completely waives them for NIL returns, benefiting taxpayers significantly.
For expert assistance in GST return filing, visit: Finodha GST Services.
Q5: From when is this late fee waiver applicable?
Answer: The notification comes into effect from November 1, 2024. However, it applies retrospectively to GSTR-7 returns from June 2021 onwards. This means any pending returns with excessive late fees will benefit from the reduced cap or waiver.
For complete GST compliance support, reach out at: Finodha GST Compliance.
Q6: How can I file my NIL GSTR-7 return and avoid penalties?
Answer: To avoid penalties and comply with Notification No. 23/2024 – Central Tax, you can:
Log in to the GST portal and select FORM GSTR-7.
Enter the relevant tax deduction details (if any).
If no tax was deducted, select ‘NIL Return’ and file it.
Submit using DSC or EVC before the due date to avoid late fees.
To simplify GST return filing, consider using Finodha’s expert-led GST services: File Your GST Returns Now
Q7: How does this waiver benefit taxpayers?
Answer: The key benefits of Notification No. 23/2024 – Central Tax include:
✅ Relief for NIL GSTR-7 filers – No unnecessary penalties.
✅ Reduction in compliance costs – Late fees capped at ₹1,000 (earlier unlimited).
✅ Encouragement for timely filing – Motivates taxpayers to comply without fear of excessive penalties.
Get expert guidance from Finodha GST professionals at: Finodha GST Expert Services.
Q8: Where can I get expert help for GST return filing and compliance?
Answer: If you need professional assistance with GST return filing, TDS compliance, or any GST-related queries, you can consult Finodha’s team of GST experts at:
👉 GST Compliance Services
👉 Online GST Registration
👉 GST Return Filing
For further guidance, reach out to Finodha – your trusted GST partner.
Conclusion
Notification No. 23/2024 – Central Tax significantly reduces the burden on taxpayers, ensuring that NIL GSTR-7 filers are not penalized unfairly. It encourages timely compliance while making the GST system more transparent and taxpayer-friendly.
For hassle-free GST services, visit Finodha.in today! 🚀
Download PDF: Notification No. 23/2024 – Central Tax
Read More: Seeks to amend Notification No 12/2017- Integrated Tax (Rate) dated 28.06.2017.
More Information: https://taxinformation.cbic.gov.in/
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