The government waived late fees for small taxpayers registered under the composition system for the financial year 2021-22 for a period of two months, till June.
The Central Board of Indirect Taxes and Customs (CBIC) announced in a notification that the late fee for late filing of GSTR-4 for the fiscal year 2021-22 will be waived from May 1 to June 30, 2022. The taxpayers who are registered under the composition scheme must file GSTR-4 once a year. For late filing of GSTR4, the GST law charges a late fee of Rs 50 per day. When the entire amount of tax due is zero, however, a late fee of up to Rs 500 can be charged.
The highest cost that can be levied in any other circumstances is Rs 2,000. Any trader with a turnover of less than Rs 1.5 crore can choose for the GST composition scheme, while businesses in the north-eastern states can opt for Rs 75 lakh. Manufacturers and traders are required to pay a 1% GST, whereas restaurants must pay a 5%.
According to Rajat Mohan, Senior Partner at AMRG & Associates, the government has waived the late cost for late filing of form GSTR-4 until June 30, 2022, for the convenience of small taxpayers.