Notification No. 20/2021 – Central Tax (Late Fee Cap for GSTR-1)

Notification No. 20/2021 – Central Tax, dated 01 June 2021, issued under Section 128 of the CGST Act, 2017, provides for a partial waiver of late fee leviable under Section 47 for delayed furnishing of FORM GSTR-1. The relief is granted by prescribing a maximum cap on late fee payable, and any late fee beyond such cap stands waived. The notification amends Notification No. 4/2018 – Central Tax by insertion of an additional proviso.

Statutory Basis and Scope

• Power exercised under Section 128 (waiver of late fee, wholly or partly)
• Affects late fee leviable under Section 47
• Applicable exclusively to FORM GSTR-1
• Relief is by way of capping of late fee, not complete waiver

Applicability

• Applicable from tax period June 2021 onwards
• For quarterly filers, from quarter ending June 2021 onwards
• Covers FY 2021-22 and subsequent periods
• Prospective in operation
• Not applicable to periods prior to June 2021

Late Fee Cap Prescribed

Operation of the Cap

• GSTR-1 not furnished by the due date prescribed under Rule 59
• Late fee accrues under Section 47
• Late fee exceeding the prescribed cap stands waived automatically
• No application, approval, or separate compliance required

Limitations

• No complete waiver of late fee
• No modification of statutory due dates
• No COVID-based or force-majeure relief
• No sunset clause; applies till date, subject to amendment or rescission