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Section 47 and 50 of the CGST Act 2017 lays down the late fee and the interest payable under the CGST Act. The Indian Government made certain amendments to Section 47 (late fee under CGST Act) with a view to reduce the maximum cap of late fee. In this article, we shall discuss the recent changes introduced in the CGST Act pertaining to late fee and interest.
Section 47 of the Act comprises of provisions that deal with levy of late fees for the registered person who fails to file GST returns on time as prescribed.
Under this section late fee is explained as follows:
As per latest amendment notified through a notification are as under:
Late fee payable under section 47 of the Act for June 2021 onwards or quarter ending June, 2021 onwards, who fail to produce the details regarding outward supplies in form GSTR-3B by the due date:
For those taxpayers that have an aggregate annual turnover in the preceding year more than 5 crore rupees, the late fee will be capped to maximum 5000 rupees under Section 47.
The late fee for not furnishing Form GSTR 3B for the tax periods from July 2017 to April 2021 is reduced/waived as provided below:
It is worth mentioning here that reduced rate of late fee will apply in case where GSTR 3B returns for these tax periods are furnished between 1st June to 31st August 2021.
Late fee payable under section 47 of the Act for June 2021 onwards or quarter ending June 2021 onwards, who fail to produce the details regarding outward supplies in form GSTR-1 by the due date:
Section 50 of the CGST Act 2017 will attract if there is any delay in furnishing GST returns apart from the late fee. A person who is liable to pay tax as per the provisions of the CGST Act, 2017[1] or the rules made thereunder, but fails to pay tax or any part thereof or claim excess input tax credit or excess reduction in output tax liability will be required to pay interest.
The Interest rates have been discussed below:
The interest payable and late fee under CGST Act 2017 have been defined under Sections 50 and 47 of the Act, respectively. The latest amendments can benefit the taxpayers as the maximum cap of the late fee has been reduced. Having said that, taxpayers should look to file GST returns on time to avoid the consequences such as late fee and interest rates.
Read our article:Amendments in GST Rule – with effect from January 1, 2021
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