By issuing a notification, the Central Board of Indirect Taxes and Customs has given a big gift to crores of small businessmen of the country. CBIC has said that such businessmen who could not file the annual return of the previous financial year under the composition scheme, they will be exempted from the late fee of May and June.
New Delhi. The Modi government at the Center has given a big gift to crores of small businessmen of the country. Businesses registered under the composition scheme will not have to pay late fees for the delay in filing the annual return of the previous financial year. These traders have been exempted from paying leet fee for two months.
The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification stating that the late fee for May and June will not be charged for the delay in filing the final annual return GSTR-4 for the financial year 2021-22. According to the CBIC, small traders registered under the composition scheme will not pay any lit fee from May 1 to June 30. GSTR-4 is filed only by small businessmen involved in the composition scheme.
How much is the late fee
Under the GST law, for delay in filling the return form GSTR-4, the businessmen have to pay a late fee of Rs 50 per day. In cases where the business has zero tax liability, a maximum late fee of Rs 500 is payable. In all other cases the maximum late fee is Rs.2,000. At present, after the arrival of the new order, there will be exemption from this late fee for May and June.
Who is the composition scheme for?
GST Composition Scheme is for those businessmen whose annual turnover is less than Rs 1.5 crore. For the northeastern states, this limit of turnover is Rs 75 lakh. Under this scheme, businessmen have to pay only 1% GST. However, this limit is 5 per cent for restaurant owners, while other service providers have to pay 6 per cent GST in the composition scheme as well.
What is the limit for which business?
While a limit of 1.5 crore has been given to the general businessmen for adopting the GST Composition Scheme, the limit is Rs 75 lakh for the businessmen of the states like North East and Himachal Pradesh. However, the businessmen associated with the service sector have been given a limit of only 50 lakhs. If a businessman does service related business along with normal business, then he will be allowed to take advantage of composition scheme by including 10 percent of the total amount received from the service sector in his other business.
AMRG & Associates Senior Partner Rajat Mohan says that the abolition of late fee on delay in filing GSTR-4 by the government is a welcome step. This will give great convenience to the small businessmen and they will also be encouraged to follow the rules related to GST compliance.
