GSTR 1 Late Fees

GSTR 1 Late Fees
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Last updated on August 4th, 2021 at 11:26 am

GSTR 1 Late Fees

  • Taxpayers who are registered under GST are required to furnish prescribed GST returns within the notified due dates for the tax period.
  • Delay in furnishing Nil GSTR 1 will also attract late fees u/s 47.
  • Late fees is always to be deposited through an electronic cash ledger only. It can not be set off against the balance in the electronic credit ledger.

Rationalization of late fees for GSTR 1

GST council took the decision in the 43rd GST Council Meeting dated 28th May 2021 to cap the maximum late fees for delay in furnishing the GST return in Form  GSTR 1 by issuing a CGST Notification no. 20/2021 dated 1st June 2021.

Return 

Late Fees per day

Maximum Late Fees

Nil GSTR 1 

Rs. 20 per day (SGST + CGST)

Irrespective of the turnover

Rs 500 (SGST+CGST)

Other than Nil GSTR 1

 

Rs. 50 per day (SGST+CGST)

If AATO in the preceding year is less than Rs. 1.5 Crores

Rs 2,000 (SGST+CGST)

If AATO in the preceding year above Rs 1.5 Crores less than Rs. 5 Crores

Rs 5,000 (SGST+CGST)
If AATO in the preceding year is above Rs. 5 Crores

Rs 10,000 (SGST+CGST)

Note: Rationalised late fees will be appliable for the month of June 2021 and onwards. 

Note: Late Fees for taxpayers having AATO exceeding Rs 5 Crores in the preceding financial year were not rationalized in 43rd GST Council Meeting. So, the earlier upper cap of Rs. 10,000/- would apply.

Second GST Amnesty Scheme for GSTR 1

GST council took the decision in the 38th GST Council Meeting dated 18th December 2019  to waive off the late fees for non-filers of GST return for the months of July 2017 to November 2019.

  • Return – Form GSTR 1 (Monthly GST Return and Quarterly GST Return)
  • Taxpayer – All the registered taxpayers who were required to furnish GSTR 1 monthly/quarterly
  • Tax Period for which waiver – July 2017 to November 2019 (29 months)
  • Period of Filing – 19th December 2019 to 10th January 2020.
  • NotificationCGST Notification no 74/2019 dated 26thDecmeber 2019.
  • Extended Period of Filing – 19th December 2019 to 17th January 2020.
  • Notification for extensionCGST Notification no. 04/2020 dated 10th January 2020

Note: The due date of furnishing GSTR 1 was not extended, it was only a waiver from late fees.

First GST Amnesty Scheme for GSTR 1

GST council took the decision in the 31st GST council meeting held on 22nd December 2018 to waive off the late fees for non-filers of GST return for the months of July 2017 to September 2018.

  • Return – Form GSTR 1 (Monthly GST Return and Quarterly GST Return)
  • Taxpayer – All the registered taxpayers who were required to furnish GSTR 1 monthly/quarterly
  • Tax Period for which waiver – July 2017 to September 2018 (15 months)
  • Period of Filing – 22nd December 2018 to  31st March 2019.
  • Notification – CGST notification no. 75/2018 dated 31st December 2018

Note: The due date of furnishing GSTR 1 was not extended, it was only a waiver from late fees.

Reduction of late fees for GSTR 1

Considering the plight of taxpayers, Government reduced the late fees per day leviable for the delay in furnishing the GST return in Form GSTR 1 by issuing a CGST Notification no. 4/2018 dated 23rd January 2018

Return  Late Fees 
Nil GSTR 1 Rs. 20 per day (SGST + CGST)
Other than Nil GSTR 1 Rs. 50  per day (SGST+CGST)
Max late fees can be Rs. 10,000/- (SGST+CGST)

Late Fees as per section 47 of CGST Act 2017

A taxpayer who fails to furnish the return of outward supplies in Form GSTR 1  within the prescribed due dates will be levied late fees of Rs 100 per day towards CGST and Rs. 100 per day towards SGST/UTGST up to the period of default subject to a maximum of Rs 10,000/-

Unanswered Questions arising out of above GST Amnesty Schemes???

⇒ If a taxpayer files GSTR 1  during the GST amnesty scheme will the corresponding entry credit reflect in GSTR 2A? 

⇒ What happens to the input tax credit arising out of filing GSTR 1/ Can the recipient still claim it? 

⇒ Will the taxpayer get the credit for the tax already paid by the recipient as ITC was not reflecting in GSTR 2A? 

⇒ If a taxpayer provides details of credit notes and debit notes in Form GSTR 1? Will this affect the ITC already claimed? 

Author’s Note 

Late fees for delay in furnishing GSTR 1 neither auto-populates while furnishing the return in Form GSTR 1 nor in Form GSTR 3B.  Unlike the late fees for delay in furnishing Form GSTR 3B which is auto-calculated and populates while furnishing the return in Form GSTR 3B.

So practically most of the taxpayers have not made the payment for the late fees. But as a prudent practice, auditors and taxpayers should voluntarily pay the late fees while filing GSTR 3B for the delay in filing GSTR 1.



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CA Ankita Khetan
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