Waiver of Late Fee for GST Return Filing

S.O. (E) Notification: The Central Government, under the authority of section 128 of the CGST Act, 2017, issues a notification regarding the waiver of late fees.

Late Fee Waiver Matrix: Waiver is provided for the late fee mentioned in section 47 of the Act for returns under section 44, specifically for the financial year 2022-23 onwards.

Classes of Registered Persons: Different classes of registered persons are identified based on their aggregate turnover, determining the applicable late fee waiver structure.

Aggregate Turnover Criteria: For registered persons with an aggregate turnover of up to five crore rupees, the late fee is capped at twenty-five rupees per day, subject to a maximum of 0.02% of turnover.

Second Category Criteria: For those with an aggregate turnover of more than five crores but up to twenty crore rupees, the late fee is set at fifty rupees per day, subject to a similar maximum.

Specific Waiver Provision: A special provision is made for registered persons failing to file returns for financial years 2017-18 to 2021-22 but filing between April 1, 2023, and June 30, 2023, where the late fee exceeding ten thousand rupees is entirely waived.

Encouraging Timely Compliance: The waiver aims to encourage timely filing of returns and provides relief to smaller businesses by structuring late fees proportionate to their turnover.

Government's Responsive Approach: The notification reflects the government's responsiveness to the challenges faced by taxpayers, balancing compliance requirements with support measures.