Interest on Late Filing of GSTR-3B, Goods and Services Tax - GST

[Shyam Naik]

Rule 88B was amended not no collect interest for delayed filing of GSTR-3B, if there is sufficient balance in the Electronic Cash Ledger with effect form 10.07.2024. The question is whether the amendment is curative in nature and therefore retrospective. Whether, not giving effect to the amendment from 01.07.2017 would amount to perpetuating the interest collected, which was not due and amounts to violation of Art 265 and 300A.

In the agenda for the 53rd Council Meeting, it is stated collection of interest for mere delay in filing GSTR-3B, in cases of sufficient balance in Electronic Cash Ledger does not seem fair and amounts to collection of interest on tax already received by Government.

In all fairness, the amendment should have been given retrospective effect from inception and the Council / Government should have shown magnanimity, which could have put an end to the litigation lying at various forums, including writ petitions before High Courts.

The Hon'ble High Court of Gujarat, in the case of Arya Construction 2024 (7) TMI 239 - GUJARAT HIGH COURT has ruled in favour of petitioner. The revenue has accepted the judgment. A retrospective effect to the amendment would have been respect to the Rule of Law.

The prospective amendment appears to be too late and half hearted.

Posts / Replies

[Paul Hicks]

When it comes to late filing of GSTR-3B, it's important to be aware of the interest rates that apply. I found some useful insights on various topics like this when Iit's  here clear that the penalty for late submission can really add up. The interest is typically charged at 18% per annum, and it starts accumulating from the due date of filing. It’s definitely worth staying on top of your deadlines to avoid these additional costs.

[DR.MARIAPPAN GOVINDARAJAN]

Even though it is late it will be helpful to the registered person.  In my view it is not a fit case to give retrospective effect.  If you have any grievance you may file a petition before High Court for getting ruling in your favor.