Government caps late fee at Rs.500/- for GST returns filed before 30 September 2020:

Updated: Nov 8, 2020

Persons with Nil liabilities had huge late fee outstanding under previous provisions in their case government has been changed to zero liability now.


The government has capped the maximum late fee charged on late GST filing at Rs.500/- per return if filed before 30th September 2020 and has changed to zero late fee for those with nil tax liability. It is an action in response to clear the ongoing mess in the GST system. Under previous laws, Those persons eligible for nil tax were tied up with large amounts of late fee.


The Earlier Late fee was Rs.200/- per day, with a cap of Rs.10,000/- per return. The late fee relates to the filing of the form GSTR-3B or the summary input-output returns.


Even those cases with a nil amount of liability may have a late fee piled up. Persons with Nil liabilities are generally for those taxpayers who submit returns quarterly. Return filers have received late fee amounting to lakhs of amounts under the previous gst laws, as of on 01 July 2017, which is said to have created a mess in the system.


For those persons filing returns for February to April-2020, The late fee was waived off if they filed before June 24 because of the pandemic.

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