Late Fees Waiver Under GST Unfair for Those Who Already Paid

The GST (Goods and Services Tax) Council had decided to provide a late fees waiver facility for the assessees who have not paid their GST returns from July 2017 till March 2020 on the condition that all such assessees will file their returns from 1st July 2020 till 30th September 2020. A lot of assessees, who have already filed their delayed returns along with the late fees for it, have said the waiver to be unfair to them. All such assessees are now demanding a refund of the late fees already paid by them for the delayed returns on the grounds that injustice has been done with such assessees. Some tax professionals have also supported the claims of the assessees and suggested that the scope should be increased to include such assessees under the waiver. 

Narinder Bhamra, president of Fasteners Manufacturers Association of India said that the GST Council has been unfair to the defaulters who had filed the delayed returns within months after the deadlines but no leniency has been shown by the department for the step but on the other hand, the assessees who have not filed the GST returns Get to know the online procedure of filing GST return in India. Also, we provide each and every GST form according to the taxpayers’ category. Read More for years are being rewarded with a waiver. He said that the decision was unfair to the assessee who has paid the late fees with their hard-earned money and opposes the decision. He informed that the association will be doing everything in their power to raise a voice against injustice. The money of those who have paid the late fees should not be wasted by such a bizarre decision. Harsh Karipal, the finance secretary of Knitwear Club, said that they are not against the waiver as a whole but they want that the taxpayers who have already paid a huge late fee for filing the delayed returns, should be provided some kind of relief from the GST Council Get to know the online procedure of filing GST return in India. Also, we provide each and every GST form according to the taxpayers’ category. Read More

Informing about the issue, NK Thamman, a noted tax professional from Ludhiana said, “Under GST provisions, each assessee is required to file monthly GSTR-3B return Read an easy guide to GSTR 3B form filing through Gen GST Desktop software version 2.0. Also, we have attached a PDF file of the complete procedure. Read More by 20th of next month. In case assessees having turnover less than Rs 5 crore and situated in State of Punjab, last date is 24th of next month. As per rules the assessees who are having tax liability, but fail to file return by due date, the late fee is Rs 50 for every day of delay.Similarly, the assessees who are having NIL tax liability, but fails to file a return by the due date, the late fee is Rs 20 for every day of delay, as per press release issued for decisions made in ’40th Virtual Meeting of GST Council’ held on June 12th, 2020, the GST Council has totally waived late fee for non-furnishing of monthly GSTR-3B (where there is NIL tax liability]) by the due date for the period July 2017 to January 2020, if such return is filed between July 1st to September 30th, 2020. Similarly, the GST Council has capped the maximum late fee at Rs 500/- per return for non-furnishing of monthly GSTR-3B (where there is a tax liability) by the due date for the period July 2017 to January 2020. Subject to condition that if such return is filed between July 1st till September 30th 2020. As per GST Council, this decision has been taken to clear up pendency by those assesses who have not filed their returns due date.”

He also said that the Council had earlier waived the late fees for delay in filing the returns under for the period of July 2017 to September 2018 if such returns were filed by the assessees from December 22, 2018, till March 31, 2019. The information about the waiver was provided in the notification issued by the department dated 31st December 2018. But, the notification did not contain any information regarding the refund of late fees already paid by some of the taxpayers for filing a delayed return. 

All the assessees who have already paid the late fees, are hoping that the government and the council will take necessary and fair decisions regarding this matter at the earliest