The federal government has capped the utmost late fee for submitting monthly returns (GSTR-3B) at Rs 500 for the tax interval between July 2017 and July 2020, supplied taxpayers file the returns earlier than September 30, 2020, a finance ministry assertion mentioned.
The Central Board of Oblique taxes and Customs (CBIC) has already notified that there might be no late charges if there isn’t any tax legal responsibility, and, if there may be any tax legal responsibility then a most late fee of Rs 500 per return could be relevant to such GSTR-3B returns filed as much as September 30, 2020, it mentioned.
Jigar Doshi, founding associate at tax know-how agency TMSL mentioned, “With this, the late fee has been waived completely for returns with ‘no liability’ and capped at Rs 500 for returns ‘with liability’. The only condition for availing this benefit is for returns to be filed by September 30, 2020.”
“The initiative by CBIC has a dual benefit from the government’s perspective, to clear the backlog of returns and to impart some working capital relief to the taxpayers,” he mentioned.