Government Modifies Late Fee Structure for GST Returns

Amendment in Late Fee Structure: Government amends Notification No. 13/2017–Central Tax, revising late fee provisions for GST returns under CGST Act, 2017.

Legal Basis: Amendment made under section 50 of the CGST Act, 2017, in conjunction with section 148.

Change in Proviso Wording: Alters the first proviso to substitute "required to furnish the returns in FORM GSTR-3B, but fail to furnish the said return along with payment of tax" with "liable to pay tax but fail to do so."

Modification in Late Fee Table: Adjusts the late fee structure for taxpayers based on aggregate turnover and filing periods (Month/Quarter).

New Late Fee Rates: Taxpayers with an aggregate turnover exceeding INR 5 crores: 9% for the initial 15 days, followed by 18%. Taxpayers with an aggregate turnover up to INR 5 crores: Nil for the first 15 days, 9% for the next specified days, and 18% thereafter.

Applicability: Amendment deemed effective from May 18, 2021.

Issuing Authority: Notification issued by the Ministry of Finance, Department of Revenue.

Government introduces revised late fee rates, promoting timely GST return filings and easing compliance for businesses.