Salvation From GST Errors

An insight has been provided to the readers how one can safeguard against unwanted demand notice from tax authorities or unwanted issues that may arise from errors in GST compliance that are committed unknowingly. It is to be kept in mind that escaping from small obligations today might one day turn into hardships and heavy penalties.

It is very true that: What cards one has doesn’t matter, what is important that how one played it with.

It is the entity which has to decide as to which way to choose that is either to comply now or pay for non-compliances tomorrow. Keeping in mind that under the present GST regime taxpayers are not allowed any revision of returns, if once filed.

Let’s discuss the points that are considered insignificant, but they have due importance:

  1. Omitting to file NIL GST returns
  • It is important to remember that every registered person is required to file NIL return under the GST regime in case there are no transactions in a particular tax period.
  • At times, registered persons tend to forget filing of NIL GST returns and have to pay late filing fees which is a dead loss for the business.
  • The Govt has provided capping on late fees from time to time for mitigating the hardships faced by the taxpayers in case of late filing of returns.
  • For instance, the Govt had capped the late fees vide notification No 52 2020 CT at Rs 250 each under both CGST & SGST Acts for filing GSTR 3 B for some specified months.
Registered persons should keep a track on filing of GST returns even if NIL because the taxpayers generally tend to forget filing the NIL GST returns.Maximum Late Fees: Rs. 10,000 Per Return

2. Non – Filing of Final Return GSTR 10

  • On cancellation of GSTIN, a registered person is required to file GSTR 10 within 3 months from the date of cancellation of GST registration or date of issue of cancellation order whichever is later.
  • The registered person is required to declare the final GST liability, adjust the same with ITC available in GSTR 10 as up to the date of cancellation of GSTIN.
  • Recently CBIC vide Notification No 68 2020 CT has waived the amount of late fee payable which is in excess of Rs 250 (each under CGST SGST) for the registered persons who fail to furnish the GSTR 10 by the due date but furnishes the said return between the period 22.09.2020 to 31.12.2020.
  • Additionally, earlier the GST portal was allowing reporting of interest payable on late payment of tax liability under GSTR 10 but now the GST portal is auto calculating the interest payable as per the liability declared by the registered persons in their GSTR 10.
CBIC has provided a one time relief measure for non- filers of GSTR 10. In case any registered person has forgot to file its G STR 10 within the due date the same could be filed with nominal late fees of Rs. 250 each under CGST & SGST Acts up to 31.12. 2020.Maximum Late Fees:  Rs. 10,000

This content is meant for information only and should not be considered as an advice or legal  opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Tarun Kapoor

AKGVG & Associates

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