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CA Intermediate · Taxation · Returns

Sunrise Traders, Pune, is a regular taxpayer (not under QRMP) whose monthly return GSTR-3B for June was due on 20 July. It filed the return on 28 July, reporting a net cash tax liability of Rs 40,000 and nil outward supplies of inter-state nature. What is the consequence for the taxpayer under the CGST Act?

The taxpayer must pay both a late fee for each day of delay and interest on the Rs 40,000 net tax paid late. Late fee penalises the delayed filing, while interest compensates for delayed payment of tax. No short delay waives interest.

  1. AOnly interest on Rs 40,000 for the delay, with no late fee
  2. BLate fee for the delayed days and interest on the tax paid late, since the net tax payable was Rs 40,000Correct
  3. CNo interest, because the return was filed within 10 days of the due date
  4. DLate fee only, because interest applies only if the delay exceeds 15 days

Explanation

Filing GSTR-3B after the due date attracts a late fee for each day of delay. Interest is also payable on the net tax liability paid in cash after the due date, here Rs 40,000 for 8 days. There is no grace period that waives interest, so the options excusing interest are wrong.

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