The government has waived late fee on filing of GSTR-3B return after the due date but retained the levy of interest on delayed payment of GST beyond the due date of August 25, a circular issued by the Central Board of Excise and Customs (CBEC) said.
“Late fee for all taxpayers who could not file GSTR 3B for the month of July 2017 has been waived, but not the interest on late payment of tax liability,” a finance ministry release said.
GST for July had to be paid by August 25 by all registered taxpayers. The last date for filing GST returns for July was August 25 for taxpayers who did not want to claim transitional input tax credit, while it was August 28 for those who wanted to avail transitional credit.
The registered person shall be liable for payment of interest on delayed payment of tax starting from August 26 till the date of debit in the electronic cash and/or credit ledger, CBEC said.
On Tuesday, finance minister Arun Jaitley, while announcing the figures for GST collections for July, had said that a nominal late filing penalty of Rs 100 per day for CGST and SGST each will be levied for those who haven’t yet paid the GST. Regarding interest on delayed payment of tax, Section 50 of the CGST Act states, “Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding 18 per cent., as may be notified by the government on the recommendations of the Council.”
The CBEC has also allowed changes and corrections to the GSTR-3B return to be made through GSTR-1 and GSTR-2. If a taxpayer has made any error in outward supplies in GSTR-3B, it can be corrected in GSTR-1. Corrections in inward supplies or input credit can be made through GSTR-2. “This will get reflected in the revised output tax liability or eligible ITC (input tax credit), as the case may be, of the registered person. The details furnished in form GSTR-1 and GSTR-2 will be auto-populated and reflected in the returns in form GSTR-3 for that particular month,” the CBEC said.
In cases where the taxes paid as per the initial return filed in GSTR-3B is less than the amount due post reconciliation as per GSTR-1, the additional amount of tax can be paid by debiting the electronic cash or credit ledger. However, interest on delayed payment of return will be levied on the amount of tax that was due. If a taxpayer has claimed excess transitional input credit, it would be added to the output tax liability and will have to be paid along with interest, the CBEC said. Unused input tax credit will be transferred to the taxpayers’ account and can be offset against the additional output tax liability next month, it said.
GSTR 1 is to be filed by all taxpayers by September 5 and GSTR 2 and GSTR 3 are to be filed by all taxpayers by September 10 and September 15, respectively. The Centre and states have collected Rs 92,283 crore as GST for the month of July, the first month of the implementation of the indirect tax regime, marginally higher than the projected target of Rs 91,000 crore. Jaitley had said on Tuesday that 64.42 per cent of the total registered taxpayers, excluding composition dealers and registrants in August, had filed GST returns for July and that the tax collection number was expected to “somewhat increase” with more compliance.