CGST Section 47 — Levy of late fee
CGST Act · Levy of late fee
Quick Answer
Section 47 of the CGST Act, 2017 governs Levy of late fee. It provides the core statutory basis, outlining the essential legal principles, rights, and liabilities under Indian indirect tax law. Section 47 GST: Levy of late fee — eligibility, conditions, case laws and compliance impact under Indian tax law.
Plain-English Explanation
Section 47 of the CGST Act, 2017 deals with the levy of late fees for failing to file certain GST returns by their respective due dates. It essentially penalizes registered taxpayers for delays in filing prescribed returns, thereby ensuring compliance with the GST regime.
This section applies to any registered person under the GST Act who fails to furnish the details of outward supplies (GSTR-1), monthly returns (GSTR-3B), final return (GSTR-10), or annual return (GSTR-9/9A) by the stipulated due dates. The specific returns covered and the corresponding late fee structure are detailed within the section.
Here's a breakdown of the key conditions and provisions:
- Late Fee for Delayed GSTR-1/3B/10/5 Returns: For delays in filing GSTR-1 (details of outward supplies), GSTR-3B (monthly return), GSTR-10 (final return when registration is cancelled), or GSTR-5 (return for non-resident taxable person), a late fee of ₹100 per day is applicable under CGST and an equivalent amount under SGST/UTGST, making it a total of ₹200 per day.
- Maximum Late Fee Limit: The maximum late fee that can be levied for delays in filing GSTR-1, GSTR-3B, GSTR-10 or GSTR-5 is capped at ₹5,000 (₹2,500 under CGST and ₹2,500 under SGST/UTGST).
- Late Fee for Delayed GSTR-9/9A Returns: If any registered taxpayer fails to submit their annual returns by the due date, a late fee of ₹100 per day will be applicable.
- Maximum Late Fee Limit for Annual Return (GSTR-9): The maximum late fee for delays in filing the annual return (GSTR-9/9A) is capped at 0.25% of the turnover in the State or Union Territory (0.25% under CGST and 0.25% under SGST/UTGST, totaling 0.5%).
Practical Examples:
- Example 1 (GSTR-3B): Suppose a registered business, "XYZ Traders," fails to file its GSTR-3B for the month of October by the due date (20th of November). If they file it 10 days late (on 30th of November), they would be liable to pay a late fee of ₹2,000 (₹100 x 10 days under CGST + ₹100 x 10 days under SGST/UTGST).
- Example 2 (GSTR-9): Consider a registered business, "ABC Manufacturing," with a turnover of ₹1 Crore in a particular state. If they file their annual return (GSTR-9) 30 days late, the late fee would be calculated as ₹200 per day, subject to a maximum of 0.5% of their turnover, which would be ₹50,000 (0.5% of ₹1 Crore). However, the actual late fee would be lower if the ₹200/day calculation exceeds the 0.5% turnover limit.
Important Amendments:
The section has been subject to amendments, particularly concerning the specific returns to which the late fee applies. The Finance Act 2022 omitted references to Section 37 (details of outward supplies) and Section 39 (returns) from sub-section (1) of Section 47, effective from October 1st, 2022. This means GSTR-1 and GSTR-3B were no longer explicitly mentioned. However, in the same amendment, Section 52 (TCS Return) was inserted, bringing TCS return filing under the purview of late fees. Despite these amendments, it is crucial to stay updated with notifications and circulars issued by the CBIC, as these often provide clarifications and updates on the application of late fees under GST.
In essence, Section 47 aims to promote timely compliance by imposing a financial disincentive for delayed filing. Registered persons should prioritize timely filing of GST returns to avoid these late fees and maintain a healthy compliance record.
No case laws found for this section yet.
Browse all case laws →Frequently Asked Questions
What is the late fee under CGST Section 47 for delayed filing of GSTR-3B?
Under CGST Section 47, a late fee is levied for the delayed filing of GSTR-3B. The specific amount varies based on the turnover of the business and the length of the delay, subject to maximum amounts prescribed in the CGST Act and rules. For taxpayers with 'NIL' tax liability, the late fee is significantly lower.
How is the late fee calculated under CGST Section 47 if I have no tax liability?
If you have a 'NIL' tax liability for the tax period (i.e., no tax due to be paid), the late fee under CGST Section 47 is significantly reduced. The applicable amount is typically specified in notifications issued by the government. Currently, it is generally lower than the late fee applicable when there is a tax liability.
What is the maximum late fee that can be levied under CGST Section 47 for GSTR-3B?
The maximum late fee under CGST Section 47 for GSTR-3B is capped, as prescribed in the CGST Act and rules. The exact maximum amount depends on the category of taxpayer (e.g., based on turnover) and is specified in applicable notifications. It's important to check the latest notifications from the CBIC for the current maximum late fee amounts.
Is there any waiver or reduction in late fee under CGST Section 47?
Yes, the government occasionally announces waivers or reductions in late fees under CGST Section 47 for specific periods or situations. These are usually communicated through notifications. Taxpayers should regularly monitor these notifications to benefit from any such relaxations.
What happens if I file GSTR-3B late but pay the tax due before filing?
Even if you pay the tax due before filing GSTR-3B, you are still liable to pay the late fee under CGST Section 47 for the delayed filing. The late fee is applied for the delay in submitting the return, irrespective of whether the tax has been paid on time.
Can the GST officer waive the late fee under CGST Section 47?
Typically, individual GST officers do not have the authority to waive late fees under CGST Section 47 on their own discretion. Waivers are usually provided through notifications issued by the Central or State Government. While officers might be able to address technical glitches that led to the late filing, a general waiver requires a government notification.
What is the difference between 'late fee' and 'interest' under GST, and which one does CGST Section 47 deal with?
The 'late fee' is levied for the delay in filing the GSTR-3B return, as stipulated under CGST Section 47. 'Interest', on the other hand, is levied for the delay in paying the tax due. They are separate charges. CGST Section 47 specifically addresses the late fee applicable to the delayed filing of GSTR-3B and other returns. Interest is governed by other sections of the GST Act.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Failure to furnish details of outward supplies or returns by the due date. | Applies to registered persons failing to furnish details required under section 37, section 39, section 45, or section 52 by the due date. |
| Late fee amount for failure to furnish details of outward supplies or returns. | A late fee of one hundred rupees for every day during which the failure continues. |
| Maximum late fee for failure to furnish details of outward supplies or returns. | The maximum late fee is five thousand rupees. |
| Failure to furnish the annual return by the due date. | Applies to registered persons failing to furnish the return required under section 44 by the due date. |
| Late fee amount for failure to furnish the annual return. | A late fee of one hundred rupees for every day during which the failure continues. |
| Maximum late fee for failure to furnish the annual return. | The maximum late fee is a quarter per cent of the turnover in the State or Union territory. |
No related notifications found for this section.
Browse all notifications →Amendment History
Omitted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022 ) by s. 108 of The Finance Act 2022 (No. 6 of 2022).
Inserted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022 ) by s. 108 of The Finance Act 2022 (No. 6 of 2022).