Late fee for monthly GST returns capped till July at Rs 500 – business news

In big relief to GST taxpayers, the government has capped the maximum late fee for monthly filing of GSTR-3B returns at Rs 500 for the tax period between July 2017 and July 2020, provided taxpayers file the returns before September 30.

The Central Board of Indirect Taxes and Customs (CBIC) has already notified that there will be no late fees if there is no tax liability, and, if there is any tax liability then a maximum late fee of Rs 500 per return would be applicable to such GSTR-3B returns filed up to September 30, 2020, it said.

Jigar Doshi, founding partner at tax technology firm TMSL, said, “With this, the late fee has been waived completely for returns with ‘no liability’ and capped at Rs 500 for returns ‘with liability’. The only condition for availing this benefit is for returns to be filed by 30th September 2020.”

“The initiative by CBIC has a dual benefit from the government’s perspective, to clear the backlog of returns and to impart some working capital relief to the taxpayers,” he said.

With easing of lockdown restrictions under lockdown Unlock 2, businesses have started resuming operations.

The government is pushing the taxpayers to be compliant and at the same time being considerate by providing a late fee waiver which is restricted to a nominal amount, Doshi added.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *