Notification No.: 22/2021 – Central Tax
Date of Notification: 1st June 2021.
Relevant Sections and Rules
Central GST Act, 2017:
- Section 128 – Power to waive or reduce late fee.
- Section 47 – Late fee for delay in furnishing returns (context for waiver/cap).
- Section 51 – Tax deducted at source (class of registered persons covered).
CGST Rules, 2017 / Forms:
- Return impacted: FORM GSTR-7 (TDS return).
Integrated GST Act, 2017:
- Not applicable.
Summary of Notification
1) Daily late-fee capped for GSTR-7 from June 2021 onward:
For registered persons required to deduct TDS under section 51, the amount of late fee payable under section 47 for failure to furnish FORM GSTR-7 by the due date, for June 2021 and onwards, is waived to the extent it exceeds ₹25 per day (CGST) for the period of delay. Practically, the CGST component is limited to ₹25 per day by way of waiver.
2) Overall ceiling on late-fee liability (CGST) per return:
For the same class of deductors and periods, the total late fee under section 47 (CGST component) is waived beyond ₹1,000, effectively capping the CGST late fee at ₹1,000 per return for GSTR-7 filed for June 2021 onwards.
