In massive reduction to GST taxpayers, the federal government has capped the utmost late payment for month-to-month submitting of GSTR-3B returns at Rs 500 for the tax interval between July 2017 and July 2020, offered taxpayers file the returns earlier than September 30.
The Central Board of Oblique Taxes and Customs (CBIC) has already notified that there shall be no late charges if there is no such thing as a tax legal responsibility, and, if there’s any tax legal responsibility then a most late payment of Rs 500 per return can be relevant to such GSTR-3B returns filed as much as September 30, 2020, it stated.
Jigar Doshi, founding associate at tax know-how agency TMSL, stated, “With this, the late payment has been waived fully for returns with ‘no legal responsibility’ and capped at Rs 500 for returns ‘with legal responsibility’. The one situation for availing this profit is for returns to be filed by 30th September 2020.”
“The initiative by CBIC has a twin profit from the federal government’s perspective, to clear the backlog of returns and to impart some working capital reduction to the taxpayers,” he stated.
With easing of lockdown restrictions beneath lockdown Unlock 2, companies have began resuming operations.
The federal government is pushing the taxpayers to be compliant and on the identical time being thoughtful by offering a late payment waiver which is restricted to a nominal quantity, Doshi added.