Reduction in Late Fee for not Furnishing GSTR - 4 & GSTR – 10

Notification No. 67 & 68 – Central Tax dated 21-09-2020

Section 47 of Central Goods & Services Tax Act, 2017 (CGST Act, 2017) deals with the registered persons who fails to furnish the details of outward or inward supply required under Section 37 or 38 or returns required under Section 39 or 47 by due date shall pay a late fee of Rs. 25 for every day but if there is no outward supply in any month/quarter, late fees payable is Rs. 10 for every day, subject to maximum of Rs. 250.

Form GSTR – 4 is quarterly return which furnished by the composition dealer and Form GSTR - 10 is a final return for every registered person whose registration has been cancelled within 3 months from date of cancellation or date of order of cancellation whichever is earlier.

The late fees payable under Section 47 of CGST Act, 2017 has been amended with retrospective effect i.e. from July, 2017 to March, 2020, the late fees payable has been waived off in excess of Rs. 250 and tax payable is NIL, i.e. completely waived for those whose tax payable is NIL while furnishing Form GSTR - 10 subject to the conditions that the returns are filed between 22-09-2020 to 31-12-2020 respectively.

In conclusion, Notification No. 67 & 68 – Central Tax dated 21-09-2020 brings important amendments to Section 47 of the CGST Act, 2017, regarding the late fees payable for non-furnishing of details or returns. The late fees have been waived off in excess of Rs. 250 and tax payable is NIL for those filing Form GSTR - 10 with NIL tax liability between 22-09-2020 to 31-12-2020, providing relief to taxpayers.

Avoid unnecessary late fees. Take advantage of the amended provisions and file your Form GSTR-10 with NIL tax payable before 31-12-2020. Contact us today at info@manishanilgupta.com

Disclaimer:The information given in this article is for general guidance to the readers. This information should not be sought as a substitute for legal opinion.