Summary
The Central Board of Indirect Taxes and Customs (CBIC), in exercise of powers conferred under Section 128 of the Central Goods and Services Tax Act, 2017, and on the recommendations of the GST Council, has issued Notification No. 20/2021 – Central Tax dated 1 June 2021.
Through this notification, the Government has further amended Notification No. 4/2018 – Central Tax to grant additional relief in respect of late fee payable for delayed filing of FORM GSTR-1 under Section 47 of the CGST Act.
The notification provides that, for tax period June 2021 onwards (or quarter ending June 2021 onwards, as applicable), the late fee payable for delay in furnishing details of outward supplies in FORM GSTR-1 shall stand waived to the extent it exceeds the specified maximum amounts, based on the class of registered persons.
Late Fee Cap Introduced
The maximum late fee payable has been capped as under:
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Nil outward supplies: Late fee capped at Rs. 250
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Aggregate turnover up to Rs. 1.5 crore (preceding FY): Late fee capped at Rs. 1,000
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Aggregate turnover more than Rs. 1.5 crore and up to Rs. 5 crore (preceding FY): Late fee capped at Rs. 2,500
Any late fee in excess of the above limits stands waived.
Practical Impact
This notification provides significant compliance relief to small and medium taxpayers by limiting the financial burden arising from delayed filing of GSTR-1. It encourages timely compliance while preventing excessive accumulation of late fees, especially for nil return filers and small businesses.