Government Announces Amendments to Late Fee Waivers

Amendment to Late Fee Waiver Notification: Government amends Notification No. 76/2018–Central Tax, introducing changes to late fee waivers under CGST Act, 2017.

Legal Authority: Amendment made under section 128 of the CGST Act, 2017, based on Council recommendations.

Applicable Period: Late fee waivers apply to specific tax periods, including March, April, and May 2021.

Categories and Waiver Periods: Taxpayers with an aggregate turnover of over INR 5 crores: 15 days from the due date for March, April, and May 2021. Taxpayers with an aggregate turnover of up to INR 5 crores: Varying waiver periods for March, April, and May 2021.

Additional Late Fee Waivers: Waiver for taxpayers filing GSTR-3B between June 1, 2021, and August 31, 2021, in excess of INR 500. Nil tax payable: Waiver in excess of INR 250 for GSTR-3B filings from July 2017 to April 2021, filed between June 1, 2021, and August 31, 2021.

New Waiver Table: Introduces a table specifying waiver amounts based on turnover for GSTR-3B filings from June 2021 onwards.

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

Government introduces nuanced late fee waivers to provide relief for various taxpayer categories and encourage compliance.