The GST authority has sought, over the last few months, to consolidate the GST framework and strengthen the mechanism of compliance. Several laws were changed to make them less rigid and tax-friendly. Several measures have been introduced by the GST Council to enhance GST adherence. In a recent period between July 2017 to November 2019, taxpayers who have registered for GST have been given a relaxation in the form of a waiver of the late charge for the non-filing of the GSTR-1. A penalty of Rs. 50 per day is now imposed after 10 January 2020 by the provisions already in force.
Introduction Define GSTR-1
Each licensed trader shall file its GSTR-1 return on a monthly or quarterly basis. This comprises all information about external resources, i.e. sales.
Due dates for GSTR-1
If turnover <= 1.5 crores
Business can file quarterly returns
If turnover>1.5 crores
A business will have to file monthly returns
Should you file GSTR-1?
Regardless of any transactions that take place during the month, any identified person must file GSTR-1. The following identified individuals are allowed not to file the return:
- Input Service Distributors
- Taxpayer liable to collect TCS
- Composition Dealers
- Non-resident taxable person
- Taxpayer liable to deduct TDS
When we talking about Taxpayer Shall Pay Penalty on Late Filing of GSTR-1, we advise that one must Register their businesses under GST. We have provided all the details regarding GST Registration Online, on our official website Legal Salaah. Visit our webpage and follow all the procedures for GST Registration Online. Before that, let’s finish with the remaining points of Taxpayer Shall Pay Penalty on Late Filing of GSTR-1
Return cannot be possibly revised once filed. In the next periods (month/quarter), any mistakes made in the return could be corrected. It means that if an error is made on GSTR-1, it can be corrected on GSTR-1 in October.
The late fees for failing to file GSTR-1 is Rs. 50 per day and for zero returns, it is Rs 20 per day.
What is the maximum penalty?
Rs. 10000 can be the maximum penalty for not filing GSTR-1 and hence it has now been important to file GSTR-1 timely maximum by 10th January.
Filling GSTR-1 important even though no sale was made for the month?
GSTR 1 is required to be submitted. You have to file a return quarterly if your total annual turnover is up to 1.5 crores.
Late fine waived off?
Recently, for the period from July 2017 to November 2019, the Central Board of Indirect Taxes and Customs had notified that the late non-filing fee of GSTR-1 is suspended. This was established as a one-time step to help GST registration taxpayers clear the caseload of all returns regarding GSTR-1 that they have not submitted since July 2017.
Why was it important for the late fine to be levied?
According to CBIC, a late fine is important for smooth and quick compliance by the taxpayers. Hence the late fee will be applicable after January 10th, 2020.