Late fee levied for delay in furnishing GST return

A registered person who fails to furnish following GST return by the due date shall pay a late fee.

• Statement of outward supplies U/S 37
• Returns for inward supplies U/S 38 
• Monthly summary return in form GSTR-3B – U/S 39
• Details of the supplies made by composition dealers – U/S 39(2)
• Final return U/S 45

In above cases, late fee should be the least of followings;

• Rs 25 for every day during which such failure continues, each under CGST /SGST. In case of NIL return its Rs 10 per day,
• Rs 5000

This means for a delay of 2 days of filing, you need to find out the month for which you are liable to pay late fee. If for that month, return is NIL, then late fee has to be calculated Rs 10 under CGST and Rs 10 under SGST for 2 days, which comes to Rs 40 (Rs 10*2 under CGST Act +Rs 10*2 under SGST Act). In this case, Rs 20 as a late fee will go to the center and Rs 20 to the state government. 

In case of default in failure to file annual return U/S 44 by the due date of filing, the registered person shall be liable to pay late fee which is the least of the following;

• Rs 100 for every day during which such failure continues;
• 0.25% of the turnover of registered person in the state or union territory

Turnover in state or union territory means the aggregate value of all taxable supplies and exempt supplies made within a state or union territory by a taxable person, export of goods or services or both and interstate supplies of goods or services or both made from the state or union territory by the said taxable person but excludes central tax, state tax,union territory tax, integrated tax and cess. However, it excludes the value of inward supplies on which tax is payable by a person on reverse charge basis.

Notice for delay in filing GST return

As per GST law, if a registered person has failed to furnish return U/S 39, 44 and 45, a notice shall be issued requiring him to furnish such return within 15 days in form GSTR-3A. Notice will be asking taxpayers to file all such returns within 15 days from the date of serving of notice.

After serving notice, if the registered person has failed to furnish return then, the proper officer can proceed with making a best judgement assessment on the basis of information available with or granted by him. 

Best judgement assessment shall be done within 5 years from the due date prescribed for filing annual return under section 44 of CGST Act, 2017 for that particular year. 

However, if the registered person has furnished return within 30 days from the date of serving the best judgement assessment order, then such order shall be stand withdrawn but the liability to pay interest for delay in payment and late fee for delay in furnishing returns would continue.