Section 47 of CGST Act, 2017 : Section 47: Levy Of Late Fee

Explanation using Example

Imagine a business owner, Mr. Sharma, who is registered under the GST regime. He is required to file his monthly GST returns by the 20th of the following month. However, due to some oversight, he fails to file his return for the month of January by the due date. The delay continues for 10 days. According to Section 47(1) of the CGST Act, Mr. Sharma will incur a late fee of one hundred rupees for each day of delay. Therefore, for the 10-day delay, he would have to pay a late fee of 100 x 10 = 1,000 rupees, provided this amount does not exceed the cap of five thousand rupees.