The Government of Haryana on October 29th 2024 issued an important notification through the Excise and Taxation Department, offering relief to businesses and taxpayers who are required to file FORM GSTR-7 under the Haryana Goods and Services Tax (GST) Act.
This notification comes as part of the government’s continued efforts to provide tax relief in light of the ongoing challenges faced by businesses. The waiver specifically applies to the late fees associated with the non-filing of GSTR-7 returns for the period beginning June 2021.
What is FORM GSTR-7?
Under the GST Act, businesses that are required to deduct tax at source (TDS) under Section 51 of the Act must file FORM GSTR-7 to report the amount of tax deducted and deposited with the government. This form is typically filed by government departments, local authorities, and certain other specified entities who make payments to suppliers and need to withhold a portion of the tax at the time of payment.
Failure to file this return on time can lead to the imposition of a late fee, which this notification aims to partially waive.
Key Features of the Notification
1. Waiver of Late Fee for Delayed Filing of GSTR-7
The central aspect of this notification is the waiver of late fees for registered taxpayers who were required to file FORM GSTR-7 but failed to do so by the due date. The waiver applies to returns for the period starting from June 2021 onwards.
Here are the important details:
- Late fee for late filing of GSTR-7 is normally calculated at a rate of ₹25 per day (for both Central and State tax), but this notification waives any late fee that exceeds ₹25 per day for those who failed to submit their returns on time from June 2021.
- However, the total late fee charged under Section 47 of the GST Act will be waived if it exceeds ₹1,000 for the period mentioned above.
This provides a significant relief for businesses that were delayed in submitting their returns but had to pay a hefty fine due to prolonged delays.
2. No Late Fee if the Tax Deducted is Nil
Another important provision in this notification concerns taxpayers who had no tax deducted at source during the month in question. If the amount of tax deducted at source during the month is nil, no late fee will be charged, effectively waiving the penalty altogether.
This clause benefits taxpayers who may not have had any TDS liabilities for the specific month and were simply delayed in submitting the return.
Applicability of the Waiver
This waiver will apply to all registered persons who are required to file FORM GSTR-7, and it specifically covers:
- Returns for the period starting from June 2021: This means that taxpayers who failed to file their GSTR-7 returns for any month from June 2021 onwards are eligible for this waiver.
- Taxpayers who have failed to file their returns by the due date: This provision applies to those who missed the filing deadlines and are now facing the financial burden of late fees.
Effective Date :
This notification will come into force on November 1, 2024. This means that any late fees above the stipulated ₹25 per day (up to the ₹1,000 limit) will no longer be applicable from that date onwards.
