Last chance to file GSTR 1 without late fees
Due date to file GSTR-1 without late fees extended to 17th January 2020
The government claims that the response of the waiver of late fees has been phenomenal and it has encouraged taxpayers to file the pending GSTR 1 for the period July 2017 to November 2019. After the announcement which was made in the 38th GST Council Meeting on 18th December 2019, approximately 54 lakhs GSTR-1 have been filed till 9th January 2020. The main aim behind the extension of the due date of the said amnesty scheme is it would result in a reduction in unmatched credit and this will, in turn, lead to the success of the move made by the Government.
Tweet on the official twitter handle of Ministry of Finance
Note: This tweet did not include any due date extension for the monthly GSTR 1 for the month of December 2019. So the due date for GSTR-1 continues to be 11th January 2020 unless notification in this regard is issued.
⊗ Overview of Form GSTR 1
Form GSTR 1 is a return for a declaration of all the details of outward supplies. GSTR 1 can be revised after it is submitted but cannot be revised once it is filed. Any changes if are to be made shall be made or mistake is to be rectified shall be done in the next period’s return.
⇒ Monthly Return: For the taxpayers whose annual aggregate turnover is more than Rs. 1.5 crores. It is to be filed within 11 days after the end of such a month.
⇒ Quarterly Return: For the taxpayers whose annual aggregate turnover is up to Rs. 1.5 crores. It is to be filed within 30/31 days after the end of such a quarter.
⊗ Late fees applicable in case of Form GSTR 1
As per CGST Act 2017, if GST registered taxpayer fails to furnish the GST returns within the stipulated due date along with payment of taxes due then late fees will be levied. Late fees is the amount charged for delay in filing the GST returns. It s calculated based on the number of days it is delayed from the due date of filing. Provisions for levy of the late fees are covered in section 47 of the CGST Act,2017.
It is important to note that even a nil return needs to be filed within the due date. Filing GST returns is important it doesn’t matter whether the tax is payable or not. Late fees will be charged even for nil returns or returns where no tax is to be paid or if tax is being adjusted from the credit available in the electronic ledger.
Note: Late fees is to be deposited in cash it cannot be adjusted from the credit available in the electronic credit ledger.
Section 47 of CGST Act 2017 – Levy of late fee
“(1) Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.
(2) Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory.”
⊗ Late fees for GSTR 1 will be waived off
Considering the hardships of taxpayers, the Government has once again decided in 38th GST Council Meeting dated 18th December 2019 to waive off the late fees applicable if GSTR 1 is not filed between 19th December 2019 to
10th January 2020 to 17th January 2020. It is kind of a one-time amnesty scheme for the taxpayers to file the GSTR 1 without the payment of late fees within a stipulated period.
To avail the benefit of waiver from late fees, returns for the period of July 2017 to November 2019 can be filed from 19th December 2019 to
10th January 2020 to 17th January 2020. . The same is notified vide a CGST Notification no 74/2019 dated 26thDecmeber 2019.
Late fees will be waived only for the months or quarters the returns are filed between 19th December 2019 to 10th January 2020. It is not mandatory to file all the returns up to November 2019 to avail the benefit of waiver from late fees.
If a taxpayer fails to furnish a return for any month/quarter upto November 2019 in the period starting from 19th December 2019 to
10th January 2020 to 17th January 2020, late fees will be applicable and will be calculated as per CGST Notification no 4/2018 dated 23rd January 2018.
- If the wordings from the notification are to be construed as it is, then the taxpayers who have filed before 19th December 2019 will be charged late fees for delay in filing GSTR 1 and notice for non-payment of applicable late fees can be issued by the Government.
⇒ It is important to note that practically, the late fees was not being paid by the taxpayers until now as neither it was auto-calculated nor it was reflected in Form GSTR 3B. While the late fees for GSTR -3B is auto calculated and is also reflected in Form GSTR-3B.
⇒ As a prudent practice, auditors and taxpayers should have voluntarily made the payment of late fees while filing GSTR 3B for the delay in filing GSTR 1.
⊗ CGST Notifications issued for waiver of late fees for GSTR 1
|Return Period||Notified due date||CGST Notification|
|Jul’17 to Sep’18||22nd Dec’18 to 31st Mar’19||No. 75 dated 31.12.18|
|Jul’17 to Nov’19||19th Dec’19 to 10th Jan’20.||No. 74 dated 26.12.19|
⊗ Reduction of late fees applicable on GSTR 1
Considering the hardships faced by taxpayers in filing GST returns within the due date. The late fees was reduced vide a CGST Notification no. 4/2018 dated 23rd January 2018
As per Section 47 of CGST Act 2017
|FORM GSTR 1 -NIL return||Rs. 10 per day for SGST
Rs. 10 per day for CGST
|Rs. 100 per day for SGST
Rs. 100 per day for CGST
|FORM GSTR 1||Rs. 25 per day for SGST
Rs. 25 per day for CGST
|Rs. 100 per day for SGST
Rs. 100 per day for CGST
|Maximum late fees can be Rs. 10,000/- (Rs. 5,000/- for each act)|
⊗ Generation of e waybill will be blocked if GSTR 1 is not filed for 2 consecutive tax periods
Earlier blocking of e way bill was linked only to the compliance of GSTR 3B, but now it has also been linked with furnishing GSTR 1 too. If a taxpayer will fail to furnish the GSTR 1 for two consecutive tax periods (months/quarters) then they will face disruption in business as failure to file returns will result in blocking of the generation of e waybill. To give this change an effect, Rule 138E of CGST Rules 2017 has been amended to insert a clause (c) in Rule 138E vide a CGST notification no. 75/2019 dated 26th December 2019.
⇒ If a taxpayer files GSTR 1 for the period mentioned in the waiver, will the same be auto-populated in GSTR 2A?
⇒ What happens to the input tax credit arising out of filing GSTR 1/ Can the recipient still claim it?
⇒ What happens to the tax already paid by the recipient as ITC was not reflecting in GSTR 2A? Is the Government planning to refund the same? By any chance with interest?
⇒ While a taxpayer files GSTR 1, they can also give the details of credit note and debit note? Will the ITC already claimed gets affected?
⇒ If a taxpayer files GSTR 1 for FY 2017-18, will the same be auto-populated in GSTR 9 of FY 2017-18?