After implementing the amendment in section 37(4) of the Central GST Act, 2017, the GST department has started issuing late fees for defaulters of GSTR-1. As per section 37(4), a registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period, if the details of outward supplies for any of the previous tax periods have not been furnished by him.
The Central Government has amended Section 37 & Section 39 of the Central Goods & Service Tax Act (CGST), 2017 vide Notification dated 28th September 2022 with effect from 01 October 2022. According to section 37(4) of the CGST, Act, a taxpayer shall not be allowed to file GSTR-1 if a previous GSTR-1 is not been filed and as per sec 39(10) a taxpayer shall not be allowed to file GSTR-3B if GSTR-1 for the same tax period is not filed.
Under the GST law, the late fee for not furnishing GSTR-1 will be Rs 200 per day for late filing (Rs 100 as per the CGST Act and Rs. 100 as per SGST Act). The late fee imposed will be from the date post to the last date. But post to the notifications provided up to Feb 2021, the late fees will be carried on to get levied on somewhat a less fee of Rs 50 per day and Rs 20 per day for nil return. Remember that in the GST portal the late fee on GSTR-1 will presently not get demanded as a segment of payment challan in PMT-06 during the time of furnishing of the GSTR-3B.
The input claimed on the missing invoices by the recipient shall be filed by the seller within the next two tax periods from the input claimed by the recipient. If the same is not filed by the supplier, the input claimed by the recipient shall be reversed with interest and penalty.
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