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Huge late fees in gst?

04 September 2019

Hello All,

I am a small freelancer who was working online. My clients were from abroad and I was getting money through freelance sites.

In April 2018, my freelance site informed me that registration of GST is essential to withdraw money from the site, I don't know why.

I applied and then went to a CA, he told me that since the income doesn't attract GST, no need to file the returns. So, I didn't file it.

Now, I am getting to know that everyone should file the returns. When I went to the CA, he flatly refused that he ever said it.

Frustrated, I went to another CA, he told me I have to pay late fees which could be around 1.4 lakhs.

My whole income during 2018-19 is around 35,000 INR. I am in big trouble now.

Any suggestion what I can do? Is there any amnesty scheme for it. Please help me.

thanks

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13 Replies

Sonu Maheshwari (Jr. Account & Finance Manager) (206 Points)
Replied 04 September 2019

Presently No Chance if u wait for any waiver or amnesty scheme you return due penalty were increase day by day till ... waiting periods

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 04 September 2019

If you are registered in GST, then department must have sent you GSTR3A notice, when you were not filling returns. Please check your registered mail.

However, The law has fixed a maximum late fees of Rs 5,000. This means that in any case, the maximum late fees that can be charged by the Government is Rs 5,000 only. It means it will not calculate as day by day when it will exceed from 5,000/-

rohit bhardwaj (n/a) (32 Points)
Replied 04 September 2019

I didn't got any notice. when I tried to check for June 2018. late fees was 3900 CGST and 3900 SGST

Piali Roy Chowdhury (605 Points)
Replied 04 September 2019

Your Registration is not cancelled ???

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 04 September 2019

In that case, You have to contact with reputed CA. Here I am giving you some clarification, you can discuss him on these things.

As per Section 47 (1) of CGST Act : Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.

https://economictimes.indiatimes.com/news/economy/policy/govt-waives-late-fee-for-non-filers-of-gst-returns-between-july-17-sept-18/articleshow/67339080.cms?from=mdr

Please read through above link, Till Sep 2018 GST Late Fee has been waived off for Non Filers of GST Returns, It was decided by GST Council Meeting dated 22-12-2018, That means you have to pay late fees only from Oct 2018 to till date.

You can contact to me directly on Whatsapp 9955369975

rohit bhardwaj (n/a) (32 Points)
Replied 04 September 2019

Originally posted by : Piali Roy Chowdhury
	Your Registration is not cancelled ???

Shivam RC (Student) (23683 Points)
Replied 04 September 2019

As per Section 29(2) clause (c) of the CGST Act 2017 , If a Registered Person does not files GST Returns for a consecutive period of 6 months, then his Registration will be cancelled by the Proper Officer on suo moto basis.

2 Like

rohit bhardwaj (n/a) (32 Points)
Replied 05 September 2019

Originally posted by : Shivam RC
	As per Section 29(2) clause (c) of the CGST Act 2017 , If a Registered Person does not files GST Returns for a consecutive period of 6 months, then his Registration will be cancelled by the Proper Officer on suo moto basis.

then why mine wasn't cancelled? it is still active.

Uttam (employee) (814 Points)
Replied 05 September 2019

I don't think dept use this clause as it is optional to dept and not mandatory.

when there is pending liability or late fee they will not suomoto cancel.

Akshay Jain (Tax Consultant) (1024 Points)
Replied 05 September 2019

sir I hope you have to speak with your jurisdictional officer if they don't give any solution then you have to pay these liability beacouse it will raise day to day