GSP Update: Collection of Late Fee of GSTR -1 through GSTR -3B implemented in Sandbox.

GSP Update: Collection of Late Fee of GSTR -1 through GSTR -3B implemented in Sandbox.

The Goods and Services Tax Network team (GSTN team) has provided an update that the following government mandate were implemented with respect to GSP APIs Sandbox.
Details of the mandate

Government of India through Ministry of Finance has considered imposing penalty for late filing of various FORM GSTRs, under section 47 of the Central Goods and Services Tax (CGST) Act.
For delay in filing of FORM GSTR-1, the government has advised collecting late fee payable through GSTR 3B, since FORM GSTR-1 does not have a payment table.

GST council in the 43rd GST council meeting, to reduce burden of late fee on small taxpayers, had decided to rationalize the upper cap of late fee with tax liability or turnover of taxpayers. For GSTR-1, the upper cap of late fee is linked with aggregate turnover of preceding financial year. This turnover linking is applicable from June 2021.

For taxpayers filing GSTR-1 post the due date, the system will show message – “As you are filing Form GSTR-1 after the due date, the late fee of the same shall be collected through Form GSTR-3B.

The following APIs will have impact due to the above changes
1. All- Get additional late fee breakup

The above mandate will be tentatively deployed in production on Nov 11, 2021.

Please write to us at sales@taxilla.com to know more on how the above change will have an impact on your business and how our GSP APIs can enable you to efficiently connect with GSTN portal.

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