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CA Intermediate · Taxation · Returns

Meenakshi Enterprises, a regular taxpayer, failed to file GSTR-3B for the month of June by the due date. It had nil outward supplies and nil tax liability for that month. It filed the return after a delay of 10 days. Late fee under section 47 of the CGST Act for this delay is, as per the notified reduced rate for nil returns, Rs 20 per day in total (Rs 10 CGST and Rs 10 SGST). What is the total late fee payable?

The total late fee is Rs 200. For a nil GSTR-3B the notified fee is Rs 10 under CGST plus Rs 10 under SGST each day, which is Rs 20 per day, and 10 days of delay gives Rs 200. Counting only CGST would understate it.

  1. ARs 200Correct
  2. BRs 100
  3. CRs 500
  4. DRs 2,000

Explanation

For a nil return, the notified late fee is Rs 20 per day (Rs 10 CGST + Rs 10 SGST). For 10 days it is 10 x 20 = Rs 200. Rs 100 counts only the CGST component. Rs 500 uses the Rs 50 per day rate applicable to returns with liability. Rs 2,000 uses Rs 200 per day, which is not the rate.

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