Yes, GST late fees can be waived or reduced, typically through government-issued amnesty schemes or notifications during specific periods, such as the waiver of late fees for GSTR-9C for FY 2017-18 to 2022-23 if filed by March 31, 2025. Relief often applies to specific, delayed, or Nil-return cases.
If there is an amnesty announced by the government for the default, then the GST penalty could be conditionally waived off.
Steps to Apply for the GST Waiver
Here's a simplified breakdown of the process under Section 128A: File an Application on the GST Portal: Apply electronically using FORM GST SPL-01 for non-fraudulent notices or FORM GST SPL-02 for certain orders. Include details of the tax payments made using FORM GST DRC-03.
Paying several days early can help avoid processing delays, especially on weekends or holidays. If a payment is late, act fast by paying the balance as soon as possible, contacting your issuer or requesting a fee waiver. Some issuers may forgive a first-time late fee, especially if you ask promptly.
The GST Amnesty Scheme 2025 is a relief measure aimed at reducing litigation and facilitating compliance. It allows taxpayers to settle disputes by paying the outstanding tax dues while receiving a GST waiver on associated interest and penalties.
Notification No. 08/2025 waives the late fee under section 47 of the Central Goods and Services Tax (CGST) Act for the annual return (FORM GSTR-9) for the financial years 2017-18 to 2022-23.
Avail the new GST Amnesty Scheme 2024, introduced via Section 128A for conditional waiver of interest and penalties for tax demands from FY 2017-18 to 2019-20 under Section 73. To qualify, taxpayers must fully pay outstanding tax dues by March 31, 2025.
If you pay within 30 days of the original due date, a late payment will generally not show up on your credit reports. After 30 days, you can only remove late payments that are incorrect.
How to Remove Late Payments From Your Credit Report
Yes. However, as per sub-rule (3) of Rule 164, the taxpayer shall be required to pay the full amount of tax demanded in the notice/ statement / order, as the case may be, including on account of demand of erroneous refund, to avail the benefit of waiver of interest or penalty or both under Section 128A.
The GST Amnesty Scheme 2024 allows taxpaying citizens to resolve their debts or filing issues from the years 2017-18 up to 2019-20. According to Section 73, the scheme waives interest and penalties for non-fraud situations, but taxpayers must pay their entire tax amount before March 2025 while applying by June 2025.
Condonation of Delay: As per Section 107(4), the Appellate Authority may allow an appeal to be presented within a further period of one month if it is satisfied that the appellant was prevented by "sufficient cause" from presenting the appeal within the initial three-month period .
Penalties for a late GST return
You'll be charged a penalty for late filing – $50 if you're on the payments basis; $250 if you're on the hybrid or invoice basis. The penalty is due for payment before the 28th of the month after the return was due.
If the taxpayer is unable to pay GST on time due to some reason, an interest is charged on the GST payment. An interest on late payment of GST is of 18% per annum and will be charged for the days after the due date.
If you're delivering services on time to your clients, it can be frustrating to be met with excuses for late payment, which typically fall into one of four categories: systems error, supply chain, company crisis or dispute.
A "609 dispute letter," often mischaracterized as a means of getting negative information removed from a credit report, is a name sometimes applied to a formal request for disclosure of credit information compiled by one of the national credit bureaus (Experian, TransUnion or Equifax).
You can contact lenders directly, through a nonprofit counseling agency or as part of a hardship or relief program. Forgiven debt may appear on credit reports as "settled" or "settled for less than full balance," which could impact your credit score.
To erase late payments on your credit report, you must show that the information reported is inaccurate. If you believe an error has been made, disputing the late payment can help resolve the issue.
Payment history is the most important factor when determining your credit score, so just one late or missed payment could greatly impact your credit. Legitimate payments that are 30 or more days late may stay on your credit report for seven years, but filing a dispute could remove illegitimate late payments.
10 most common excuses for late payments
Legal Waivers/Reductions: Sections 73 and 74 of the CGST Act give discretionary powers to the authorities to waive penalty in case the tax payable is paid before assessment, or the default was not intentional and due to real causes.
1. Login into GST portal: Navigate to > Services > User Services > My Applications. 2. On Navigating to 'My Applications' page, the taxpayer has to select 'Apply for Waiver Scheme under Section 128A' option under 'Application type' dropdown.
The Amnesty Scheme for GST Appeals provides relief by reducing penalties on pending GST appeals. Taxpayers with ongoing appeals in GST-related cases may benefit from a waiver or reduction in penalties if they choose to settle the appeal by paying the tax dues under this scheme.