delay filing of GSTR-3B Applicablility of penalty if filed beyond 30 days from the due date

[Affirmservicesconsultancy Privatelimited]

Applicability of Interest and Penalty in case of Delay filing of GSTR 3B:-

Case 1. If the taxpayer filed the GSTR 3B return by delay and paid the interest suo motto. Is penalty is applicable.

Case 2 If the taxpayer filed the GSTR 3B return by delay beyond 30 days from the due date of filing of return and paid the interest suo motto. Is penalty is applicable.

Case 3 If the taxpayer filed the GSTR 3B return by delay beyond 30 days from the due date of filing of return and failed to pay the interest suo motto. Audit team observe the same and issue audit observation for payment of the interest. The taxpayer paid the interest against the audit observation. Is Penalty applicable in this case under section 73(11) or any other section. if yes, penalty is applicable on net cash liability only or on total tax liability i.e. on cash and credit.

With regards

[KASTURI SETHI]

1. No

2. No

3. Yes. Read Section 73 (5) & (6) of CGST Act. Penalty is imposed upon the defaulter on basis of tax evaded. No issue of cash/credit.

[Padmanathan KV]

Para 2 of Circular 76/2018 is directly on this.

Whether penalty in accordance with section 73(11) of the CGST Act should be levied in cases where the return in FORM GSTR-3B has been filed after the due date of filing such return?

1. As per the provisions of section 73(11) of the CGST Act, penalty is payable in case self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.

2. It may be noted that a show cause notice (SCN for short) is required to be issued to a person where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised for any reason under the provisions of section 73(1) of the CGST Act. The provisions of section 73(11) of the CGST Act can be invoked only when the provisions of section 73 are invoked.

3. The provisions of section 73 of the CGST Act are generally not invoked in case of delayed filing of the return in FORM GSTR-3B because tax along with applicable interest has already been paid but after the due date for payment of such tax. It is accordingly clarified that penalty under the provisions of section 73(11) of the CGST Act is not payable in such cases. It is further clarified that since the tax has been paid late in contravention of the provisions of the CGST Act, a general penalty under section 125 of the CGST Act may be imposed after following the due process of law.

I think answer will be No in all cases. In case 3, only you pay interest as per audit para, No SCN will be issued and question of invoking 73 does not arise.

[Shilpi Jain]

Late filing of 3B attracts late fee. Another penalty cannot be levied for it.

Also penalty stipulated u/s 73 and 74 is a percentage of the tax demanded and not on the interest.

AI Summary

Penalty for delayed tax payment generally not levied if tax and interest are paid; late fee or general penalty may apply. Penalty for delayed filing of FORM GSTR 3B is generally not levied where the taxpayer files late but pays the tax and interest suo motu, since the specific penalty provision requires invocation of assessment proceedings and issuance of a show cause notice; late filing normally attracts interest and late fee, while formal penalty provisions may be considered only if assessment proceedings are initiated and a tax shortfall is identified.