Late Fee Waiver for Annual GST Returns – Notification No. 7/2023-Central Tax

Simplified Explanation of Notification No. 7/2023-Central Tax

Purpose: This notification provides a waiver for late fees associated with the delayed filing of the annual GST return for specific financial years. It also specifies the limits on late fees for different classes of registered persons.

Key Points:

1. Waiver of Late Fee for Annual Return:
   • Financial Years Affected: For returns due for the financial years 2022-23 onwards.
   • Class of Registered Persons:
     • Up to ₹5 Crore Turnover: Late fee capped at ₹25 per day, subject to a maximum of 0.02% of turnover in the State/UT.
     • Above ₹5 Crore but ≤₹20 Crore Turnover: Late fee capped at ₹50 per day, subject to a maximum of 0.02% of turnover in the State/UT.

2. Extended Waiver for Previous Financial Years:
   • Applicable for: Financial years 2017-18, 2018-19, 2019-20, 2020-21, and 2021-22.
   • Waiver Period: April 1, 2023, to August 31, 2023.
   • Waiver Amount: Total late fee exceeding ₹10,000 is