08/2025-Central Tax — Central Tax Notification for waiver of the late fee
Summary
This notification, issued by the CBIC on January 23, 2025, is good news for certain GST taxpayers who have been struggling to file their GSTR-4 returns (Annual Return for composition scheme taxpayers). Basically, it provides a one-time waiver of late fees for failing to file the GSTR-4 on time for specific financial years.
Specifically, if you are a taxpayer registered under the composition scheme and were required to file GSTR-4 for any of the financial years from FY 2019-20 to FY 2023-24 but haven't done so yet, this notification gives you a break on the late fees. The condition is that you need to file these pending GSTR-4 returns between February 1, 2025, and March 31, 2025.
If you file within this window, the late fee will be capped at ₹500 (₹250 CGST and ₹250 SGST/UTGST) per return. If there is no tax liability, the late fee is capped at ₹250 (₹125 CGST and ₹125 SGST/UTGST) per return. However, it’s important to remember that this waiver ONLY applies if you file your GSTR-4 returns within the specified timeframe – between February 1st and March 31st, 2025. Miss this deadline, and the regular late fee provisions will apply. So, if you have any overdue GSTR-4s, now is the time to act to save on late fee payments.
Key Changes
| Change | Impact |
|---|---|
| Waiver of late fee for delayed filing of FORM GSTR-4 for specified tax periods. | Reduces the financial burden on small taxpayers opting for the composition scheme, encouraging timely compliance in the future. |
| Specific conditions and timelines are prescribed for availing the late fee waiver. | Taxpayers need to adhere to the stipulated deadlines and conditions to be eligible for the waiver, requiring them to be aware of the notification's details. |
| The notification clearly defines the tax periods to which the late fee waiver applies. | Removes ambiguity regarding the applicability of the waiver, ensuring clarity for both taxpayers and tax authorities. |