Late fee for delaying GSTR-4 of FY 2021-22 waived off until 30th June 2022

The Central Board of Indirect Taxes and Customs (CBIC) has provided relief in filing the annual return in Form GSTR-4 through a late fee waiver. The yearly return applies to all the taxpayers registered under the composition scheme anytime during the financial year 2021-22.

The CGST notification number 7/2022, dated 26th May 2022, lays down the late fee waiver. The government waived the late fee for any delay in the filing on or before the due date, 30th April 2022, for FY 2021-22 until 30th June 2022.

The GST law needs the taxpayers to submit this return on or before 30th April of the financial year after the relevant financial year or the date as extended by the government. If there is any delay beyond the due date, a late fee of Rs.50 per day shall apply, up to a maximum of Rs.2,000. However, where the tax payable is nil, the government can impose a maximum late fee of only up to Rs.500.

With this notification, composition taxpayers need not cough up any late fee for filing the annual return between 1st May 2022 and 30th June 2022. For any delay after that, they must pay the late fee from 1st May 2022 until the actual date of filing the return. Even where the late fee does not reflect on the GST portal, a composition taxpayer is duly bound to calculate and pay the late fee. 

The GST Network launched the facility to file this return on 21st July 2020. It was then followed by the launch of the GSTR-4 offline tool on 6th August 2020 to allow some tables of GSTR-4 to be prepared without the internet.

The GSTR-4 return is much simpler when compared to the annual return in Form GSTR-9 applicable to regular taxpayers. The annual return in Form GSTR-4 has only four tables, out of which one table is auto-filled as per the Form CMP-08 filed every quarter during the particular financial year.

Traders and manufacturers can opt into the composition scheme if their annual turnover is less than Rs.1.5 crore for all states except those doing business from the north-eastern states that allow a limit of up to Rs.75 lakh.

On the other hand, service providers and those making mixed supplies of goods and services have a threshold turnover limit of up to Rs.50 lakh to qualify for the special composition scheme.

Under this scheme, the manufacturers and traders must pay GST at 1% on their turnover. In contrast, the restaurants that are not serving alcohol and service providers pay GST of 5% and 6%, respectively.

The decision shall provide a much-needed breather from hefty late fees for many composition taxpayers who missed the previous deadline.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in