Whether late filling fee of GSTR 1 is mandatory. In GSTR 3B late filling fee is not calculated as of now. What should we do if the Superintendent Audit issue SCN for late fee for filling GSTR 1?

Late fees is not mandatory if suitable reasons can be given by the assessee addressing the delay in filing. In case SCN is being issued, the same should be replied with cogent reasons. In case of Modicum Enterprise (OPC) (P.) Ltd. v. Deputy Commissioner of State Tax/Assistant Commissioner of State Tax - [2023] 146 taxmann.com 450 (Calcutta), it was held that late fees under Section 47 of CGST Act, 2017 can be raised for non-filing of return by due date but this provision can be invoked only when a person fails to file return and in case where the registration was cancelled and restored in appeal, such person was unable to file returns with no fault of his, and thus, no late fees can be imposed in such cases. If one can satisfy one reason for non filing beyond control, courts may grant relief from such late fees.