After implementing the amendment in section 37(4) of the Central GST Act, 2017, the GST department has started issuing late fee for defaulters of GSTR-1. As per section 37(4), a registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period, if the details of outward supplies for any of the previous tax periods has not been furnished by him
The Central Government has amended Section 37 & Section 39 of Central Goods & Service Tax Act (CGST), 2017 vide Notification dated 28th September 2022 with effect from 01 October, 2022. According to section 37(4) of CGST, Act, a taxpayer shall not be allowed to file GSTR-1 if previous GSTR-1 is not filed and as per sec 39(10) a taxpayer shall not be allowed to file GSTR-3B if GSTR-1 for the same tax period is not filed. Under the GST law, the late fee towards not furnishing GSTR-1 will be Rs 200 per day for late filing (Rs 100 as per the CGST Act and Rs. 100 as per SGST Act). The late fee imposed will be from the date post to the last date.