Late Fees For TDS - Jurishour No. 1 Tax Latest News Portal

The Central Board for Indirect Taxes and Customs (CBIC) has notified the waives late fees for TDS filers on delayed GSTR-7 filings.

GSTR-7 is a monthly return filed by individuals who deduct tax at source or TDS under the Goods and Services Tax (GST). Every GST registered individual who deducts TDS under GST must file in Form GSTR-7 by the 10th of next month. The form contains details of TDS deducted, TDS payable, TDS refund, etc.

The Registered persons to whom a notice or statement or order, referred to in clause (a) or clause (b) or clause (c) of section 128A of the GST Act, has been issued. The date 31.03.2025 upto which payment for the tax payable as per the notice or statement or the order referred to in clause (a) or clause (b) or clause (c) of section 128A of the GST Act, as the case may be, can be made for waiver of interest, or penalty, or both, under the section.

The Registered persons to whom a notice has been issued under sub-section (1) of section 74, in respect of the period referred to in sub-section (1) of section 128A of the GST Act, and an order is passed or required to be passed by the proper officer in pursuance of the direction of the Appellate Authority, or Appellate Tribunal, or a court, in accordance with the provisions of sub- section (2) of section 75, for determination of the tax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73 of the said Act.

Date ending on completion of six months from the date of issuance of the order by the proper officer redetermining tax under section 73 of the said Act.

Keys Pointer

The Procedure regarding waiver of interest and penalty under section 128A prescribed alongwith special rectification procedure to amend the dues due to insertion of section 16(4) and 16(5).

Reduction and waiver of late fee for GSTR-7 late filed for the period from June 2021 onwards notified.

Effective Date – Late Fees For TDS Waiver

The notification will come into force on November 1, 2024.

Procedure

The proper officer for carrying out rectification of the said order shall be the authority who had issued such order, and the said authority shall take a decision on the said application and issue the rectified order, as far as possible, within a period of three months from the date of the said application.

Where any rectification is required to be made in the order referred to in paragraph 1 and, the said authority has issued a rectified order thereof, then the said authority shall upload a summary of the rectified order electronically:

(i) in FORM GST DRC-08, in cases where rectification of an order issued under section 73 or section 74 of the said Act is made; and

(ii) in FORM GST APL-04, in cases where rectification of an order issued under section 107 or section 108 of the said Act is made.

The rectification is required to be made only in respect of demand of such input tax credit which has been alleged to be wrongly availed in contravention of provisions of sub-section (4) of section 16 of the said Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of the said section 16.

Where such rectification adversely affects the said person, the principles of natural justice shall be followed by the authority carrying out such rectification.

Late Fees For TDS Waiver

The total amount of late fee payable under section 47 of the said Act by such registered person for failure to furnish the return in FORM GSTR-7 for the month of June, 2021 onwards, by the due date, shall stand waived which is in excess of an amount of one thousand rupees:

Provided further that the total amount of late fee payable under section 47 of the said Act by the registered person, who fails to furnish the return in FORM GSTR-7 for a month by the due date, where the total amount of central tax deducted at source in the said month is nil, shall stand waived.