Whether Late filing fees of GST Returns allowed as an expenses in Income Tax

[CA-Gourav Garg]

Whether Late filing fees of GST Returns allowed as an expenses in Income Tax?

[Ganeshan Kalyani]

In my view, 'NO'.

[KASTURI SETHI]

Dear Sh.Kalayani Ji,. Here expense means the Querist wants deduction on account of the amount paid as penalty or late fee. You have replied, 'NO'. Your reply appears to be right. This expense is on account of default do not to be treated as expense for the assessment of Income Tax. Am I right ? Pl. Reply for my enrichment of knowledge. Thanks.

[subramanian vijayakumar]

I agree with the view of sethy ji

AI Summary

Deductibility of penalties: late GST return filing fees are not allowable as income tax deductions. Late-filing fees for GST returns are treated as penalties or payments arising from default and, therefore, are not allowable as deductible expenses for income-tax purposes because they are sanctions for non-compliance rather than costs incurred in producing income.