Late fees on CMP 08

[Venkatesh Dhongadi]

Whether there is any late fees on CMP 08?

GST department is issuing notice regarding late fees on CMP 08 on the basis of point no. 4, Notification no. 21/2019 - Central Tax dated 23-04-2019.

Whether the GST Department's contention is correct?

whereas i defended relying upon section 47(1) & 37(1) which is reproduced below:

Section 47(1) of GST Act:

Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.

And whereas, Section 37(1) reads as (1) Every registered person, other than an Input Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish, electronically, 1[subject to such conditions and restrictions and] in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period and such details 2[shall, subject to such conditions and restrictions, within such time and in such manner as may be prescribed, be communicated to the recipient of the said supplies]:

Section 37(1) specifically excludes registered persons registered u/s 10, who are composition dealers.

Whether there is any late fees on CMP 08?

[KASTURI SETHI]

Dear Querist,

Pl.lay emphasis on 1 and 2 mentioned in Section 37 above.

Have you read all circulars and Rules in this context ?

[Venkatesh Dhongadi]

Sir i have gone through the Notification no. 21/2019 - Central Tax dated 23-04-2019 only when the GST officer argued regarding late fees on the basis of this notification. Whether i can rely on section 47(1) and 37(1)?

[KASTURI SETHI]

As per Rule 62 of CGST Rules, Form GST CMP-08 is only a statement but time limit applies. Covered under Section 37 vide Notification No.21/19-CT dated 23.4.19. Late fee is payable The department is correct.

[Krishna Murthy]

Sir, Section 47(1) for the purpose of Late Fees covers a person who is required to file return u/s 37 or 39.

However, Section 37 clearly excludes a person who is paying tax u/s 10. Hence, Section 37 does not apply to a Composition Dealer and for CMP 08.

Coming to Section 39, in Sub-Section (2) it deals about furnishing of return as may be prescribed and the concerned Rule 62 applies. While Section 39(2) clearly talks about RETURN, Rule 62 does not recognize CMP 08 as Return and it is only a Statement. Hence, 47(1) does not apply to CMP 08.

Even in FAQs on CMP 08, GST website clearly states that there is no late fees applicable for delayed filing of CMP 08

[KASTURI SETHI]

I am very very eager to know the result of SCN.

[KASTURI SETHI]

A SCN is never issued blindly by the department. It is approved by the higher authorities before issuance.

[Krishna Murthy]

Dear Kasturi Sethi Sir, my contentions written on similar lines given as response in S No 4 above has been agreed by the Department and proposal of late fees for delayed filing of CMP 08 is dropped. Happy to inform you Sir.

[KASTURI SETHI]

Dear Sir,

Date of query is 21.2.24 and the case is dropped on 1.3.2024. So quick decision ? Are you talking of the querist's SCN or some other party's case ?

AI Summary

GST Late Fees Dispute: CMP 08 Deemed a Statement, Not a Return, Exempting Composition Dealers from Section 47(1) Fees. A discussion on a forum revolves around whether late fees apply to CMP 08 under the GST framework. A participant questions the GST department's notices based on Notification No. 21/2019. They argue that Section 47(1) and 37(1) of the GST Act do not apply to composition dealers, who file CMP 08. Another participant clarifies that Rule 62 considers CMP 08 a statement, not a return, and thus Section 47(1) does not apply. The department eventually agrees, dropping the late fee proposal for CMP 08, affirming that CMP 08 is not subject to late fees.