As per this waiver, the total late fee, as per Section 47 of CGST Act, will not exceed Rs. 1,000 for each delayed GSTR-7 return filing.
The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 23/2024-CT, providing relief to taxpayers regarding the late filing of NIL returns in FORM GSTR-7. Exercising its authority under Section 128 of the Central Goods and Services Tax (CGST) Act, the Central Government, based on recommendations from the GST Council, has decided to waive the late fee applicable under Section 47 for certain taxpayers.
Key Highlights of the Notification:
1. Late Fee Waiver for TDS Deductors:
Registered persons who are required to deduct tax at source (TDS) under Section 51 of the CGST Act and fail to submit their GSTR-7 return on time for the period starting June 2021, will benefit from a partial waiver of the late fee. Instead of paying the standard late fee, they will only need to pay Rs. 25 for each day the delay continues.
2. Capped Late Fee:
The total late fee, as per Section 47, will not exceed Rs. 1,000 for each delayed GSTR-7 return filing. This limit applies for periods from June 2021 onwards, ensuring that taxpayers are not excessively burdened for late submissions.
3. Full Waiver for NIL Returns:
For taxpayers who had no tax deducted at source (TDS) for a given month, and hence, no GSTR-7 liability, the late fee for delayed filing of NIL returns is fully waived. This waiver applies to late filings from June 2021 onwards.
4. Effective Date:
This notification will take effect from November 1, 2024.
The CBIC’s decision to implement this late fee waiver brings significant relief to taxpayers, particularly those filing NIL returns, by reducing compliance costs and encouraging timely return submissions.
Note:
1. What is GSTR-7 ?
GSTR-7 is a monthly return that must be filed by individuals who are required to deduct Tax Deducted at Source (TDS) under the Goods and Services Tax (GST) system. Any person registered under GST who deducts TDS is obligated to submit GSTR-7 by the 10th day of the following month. This form provides information about the TDS amount deducted, the TDS payable, any refunds related to TDS, and other relevant details.
2. What is the penalty for Late filing of GSTR-7 ?
If a GSTR-7 return is not filed within the stipulated time, a penalty is imposed. This includes a charge of Rs. 100 per day under CGST and Rs. 100 per day under SGST, totalling Rs. 200 per day of delay. However, the maximum late fee is capped at Rs. 5,000. There is no penalty for IGST in case of late filing.
In addition to the late fee, an interest rate of 18% per annum applies. This interest is calculated on the TDS amount due, starting from the day after the due date until the payment is made.
To Access the Notification No. 23/2024- Central Tax CLICK HERE
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