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CA Intermediate · Taxation · Returns

Lakshmi Gears, a registered person in Pune, was due to file its GSTR-3B for a month with nil tax liability, but filed it 6 days after the due date. Assume it is a regular taxpayer with no outward supplies in that month. Which statement about late fee is correct?

A late fee is payable for every day of delay even when the return shows nil liability, though a reduced rate is notified for nil returns. It starts after the due date and does not depend on interest or on any tax being payable.

  1. ANo late fee is payable as there was no tax liability
  2. BLate fee is payable for each day of default, but at the reduced nil-return rate under the notified scheduleCorrect
  3. CLate fee of the full normal rate applies only after 15 days
  4. DLate fee applies only if interest is also payable

Explanation

Late fee applies per day of default for delay in furnishing a return, even when no tax is due; a lower notified rate applies for nil returns. It is therefore not waived by nil liability. It is also not dependent on interest, and it starts from the day after the due date, not after 15 days.

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