On 16th May 2025, a notice was issued to a taxpayer where the Proper Officer alleged that he had filed a late GSTR-3 B.
As per the record examination, the allegation was made.
U/s 47 of the CGST Act, a late fee has been imposed as per the examination because it was furnished after the deadline.
Charging Rs. 50,000 penalty (Rs. 25,000 CGST + Rs. 25,000 SGST) was for the aforementioned reason, even for a one-day delay in filing GSTR-3B returns.
For imposing general penalties, the GST department is involving section 125 of the CGST Act, even though no specified penalty for late filing is there.
Section 125: Provisions for General Penalties: As per this section, any person who breaches any provisions of the CGST Act or the rules thereunder, for which no particular penalty is prescribed, would be obligated to pay a penalty of up to Rs 25,000.
The portal already imposed a late fee of Rs. 50/day CGST + Rs.50/day SGST. A penalty u/s 125 is also levied by the department earlier, which is separate from the late fee.
Reason
During the Month Of:
- For April 2024, the GSTR-3B return was due on May 20, 2024, but it was filed on June 14, 2024, resulting in a delay of 25 days.
- For December 2024, the GSTR-3B return was due on January 20, 2025, but it was filed on January 21, 2025, resulting in a one-day delay.
2-Month Delay penalty
For delayed GSTR-3B filing for two months, a taxpayer obtained a total of Rs 1,00,000 penalty notices, emphasising the seriousness of the late compliance.
Additional Penalties Under the GST Act’s Section 122
An additional penalty of up to Rs 10,000 or equal to the tax amount may be levied under section 122(1)(iii) read with 122(2)(B) of the GST Act, 2017 if the taxes are collected but filed post 3 months after becoming due.
Read Also: Easy to Understand 21 Offences, Penalties and Appeals Under GST
Quick Measures for Taxpayers
- It is required to be checked by the taxpayers if any returns were furnished after the deadlines.
- If any notices are obtained, he or she should make an appropriate legal response concerning the GST provisions.
Taxpayers are advised to review their filing history, as penalty notices are being issued across India. They can also use the Gen GST Software to check for notices using the simple available options.
