Centre Waives Late Fees, Reduces Interest Rates On GST For March, April due to second wave of Covid-19 pandemic

The government has waived late fees on a delay in filing GST monthly return GSTR-3B for the months of March and April and cut the interest rates for late filers, in view of the challenges faced by taxpayers due to the outbreak of second wave of Covid-19 pandemic. The relaxations will come into effect from April 18, the Central Board of Indirect Taxes and Customs (CBIC) said.

Taxpayers with a turnover exceeding Rs 5 crore will have an additional 15 days to file their monthly summary return GSTR-3B without paying any late fees. Moreover, they will have to pay a lower interest rate of 9 per cent for these 15 days (the rate of interest will be 18 per cent thereafter).

Taxpayers with a turnover of up to Rs 5 crore will have 30 additional days to file 3B returns for March and April, with a waiver in late fees. The interest rates will be ‘Nil’ for the first 15 days and 9 per cent for the remaining period. After the completion of 30 days, an interest rate of 18 per cent will be levied on the tax payers concerned.

People who have opted to pay tax under the Composition scheme will have to NIL rate of interest for the first 15 days from the due date of tax payment, 9 per cent for the next 15 days and 18 per cent thereafter.