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Arjuna (Fictional Character): Krishna, during this Diwali the due date of filing GSTR-3B and for payment of tax was on 20th October for the month of September. Further in addition to this government is levying TIME BOMB of late fees for delay.

Krishna (Fictional Character): Arjuna, Diwaili is considered to be the most auspicious festival of India. Diwali brings happiness to each and every person in the country. During Laxmi Poojan the tax payer expects that his business will grow exponentially but due to this GST return due date and even late fees of August return has created problems for the tax payer.

Arjuna: Krishna, what is the late fee charged if the GST return is not filed on time?

Krishna: Arjuna, In the GST law there is late fees of Rs 200 per day i.e. Rs 100 per day for CGST and Rs. 100 for SGST respectively. For example- The due date for GSTR-3B of September is 20th of Oct and if the return is filed on 22nd then the late fees of Rs  200* 2 days = Rs 400 is to be payable.

Arjuna: Krishna, How this late fees can be paid?

Krishna: Arjuna, Late fees of GST has to be paid separately before filing the return of GST and this late fees cannot be adjusted against the credit which means late fees has to be paid. Similarly payment of tax and Interest is to be done separately.

Arjuna: Krishna, Which month's late fee was removed previously?

Krishna: Arjuna, it is said by the government that late fee of July month was removed. Late fee for August and September was collected by the government. The government had promised that no penalty will be levied for any errors in GST Returns during first 6 months of GST. The tax payer wished that late fee for August and September should be waived as there were many changes made on the GSTN portal and the due date is during Diwali festival.

Arjuna: Krishna, What consequences will lead to late fees of GST?

Krishna: Arjuna, GST law is still in its early stages and it's been only 4 months since its implementation. At each level Government officials, tax consultants, tax payers are facing issues in understanding GST. After facing all problems they are also filing GST returns. Due to this late filing of GST return late fees is collected by the government but during these initial days where there are so many problems faced by the taxpayers the late fees should not be collected by the government.

Arjuna: Krishna, what should a tax payer learn from this?

Krishna: Arjuna, There were approximately 56 Lakh return filed in the month of July, 50 Lakh in the month of August, 40 Lakh in the month of September and there are total 80 Lakh registrations in GST which means that the government will be collecting huge amount of revenue in the form of late fees. But problem of late fee should not be faced by the person who files return with discipline. If returns not filed on, time then the time bomb of late fees will explode. GST is still in its early stages and such penalties should not be collected while the taxpayers are facing so many problems.


Published by

CA Umesh Sharma
Category GST   Report

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