Late Fee Relief On GST Returns Filing Extended Till July 2020

As a relief to GST taxpayers, the Central Board of Direct Taxes (CBDT) on Friday said that the maximum late fee for Form GSTR-3B will be capped at Rs 500 per return for the tax period July 2017 to July 2020, provided that the returns are filed before 30 September 2020.

GSTR-3B form is a self-declaration form that has to be mandatorily filed by those who have registered for Goods and Service Tax (GST), except Input Service Distributors & Composition Dealers, Suppliers of OIDAR and Non-resident taxable person. Even those with nil returns have to file the form with the tax department.

The relief is significant as a late fee of Rs 200 per day of delay is otherwise charged for central and state GST together.

On Friday, the CBDT also said that there will be nil late fees if there is no tax liability. It also said that the decision was taken after various representations were received on providing further relief on a late fee charged for the tax periods of May 2020 to July 2020, in addition to earlier provided relief for February 2020 to April 2020 and relief provided for cleaning up past pendency of returns from July 2017 to January 2020.

"Also, a uniform late fee is simpler in design and easier to implement on automated common portal. So the late fee is capped at Rs. 500 per return, if filed before 30 September 2020," said the CBIC statement.