Summary
The Central Government, exercising powers under Section 128 of the Central Goods and Services Tax Act, 2017, and on the recommendations of the GST Council, issued Notification No. 4/2018–Central Tax dated 23 January 2018, granting partial waiver of late fee payable for delayed filing of FORM GSTR-1.
Scope of Late Fee Waiver
The notification provides that the late fee payable under Section 47 of the CGST Act for failure to furnish details of outward supplies in FORM GSTR-1 by the due date shall be restricted as follows:
Cases with Outward Supplies
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Late fee payable shall not exceed Rs. 25 per day for the period of delay.
Cases with No Outward Supplies (Nil GSTR-1)
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Late fee payable shall not exceed Rs. 10 per day for the period of delay.
Any late fee in excess of the above amounts stands waived.
Practical Impact for Taxpayers
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Provides significant compliance relief to taxpayers filing delayed GSTR-1 returns.
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Encourages timely filing by reducing excessive late fee burden.
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Especially beneficial for small taxpayers and those filing Nil GSTR-1.
Important Note
This notification deals only with waiver of late fee and does not affect the requirement to file GSTR-1 or other GST returns as prescribed under the CGST Act and Rules.
Reference
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Notification No. 4/2018 – Central Tax, dated 23 January 2018
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Issued under Section 128 of the CGST Act, 2017