Seeks to waive off the late fee under section 47 for the period from 01.05.2022 till 30.06.2022 for delay in filing FORM GSTR4

## Policy Analysis Report: Amendment to Central Goods and Services Tax Act, 2017 **1. Executive Summary:** This report analyzes Notification No. 07/2022-Central Tax, dated May 26, 2022, which constitutes an amendment to Notification No. 73/2017-Central Tax, dated December 29, 2017, under the Central Goods and Services Tax (CGST) Act, 2017. The amendment provides a waiver of late fees for the delayed furnishing of FORM GSTR-4 for the Financial Year 2021-22, specifically for the period from May 1, 2022, to June 30, 2022. This report details the context, rationale, and implications of this amendment. The key finding is that this amendment offers temporary relief from late fees to taxpayers filing GSTR-4 for FY 2021-22 within a specific timeframe. **2. Introduction:** This report aims to provide a comprehensive analysis of the amendment to the Central Goods and Services Tax Act, 2017, as detailed in Notification No. 07/2022-Central Tax. The analysis is based solely on the information provided in the policy text. **3. Policy Overview:** * **Original Policy Being Amended:** Notification No. 73/2017-Central Tax, dated December 29, 2017. * **Core Objective(s):** While the original notification's objective isn't explicitly stated in the provided text, it is related to the Central Goods and Services Tax Act, 2017. This amendment appears to be aimed at providing taxpayers with a temporary waiver for late filing fees related to a specific form. **4. Background and Rationale:** The amendment likely addresses a need to provide relief to taxpayers regarding the filing of FORM GSTR-4 for the Financial Year 2021-22. A potential reason for this could be due to unforeseen circumstances or difficulties faced by taxpayers in meeting the original filing deadline, thus the government provides a waiver for the late fee within a limited timeframe. **5. Key Provisions / Changes:** This section focuses specifically on the changes introduced by Notification No. 07/2022-Central Tax. * **Specific Part of Original Policy Being Changed:** The amendment inserts a new proviso after the fifth proviso in the original Notification No. 73/2017-Central Tax. The specific content of the fifth proviso, however, is not available within the provided text. * **New Rule/Provision:** The new proviso states that the late fee payable for delay in furnishing of FORM GSTR-4 for the Financial Year 2021-22 under section 47 of the CGST Act shall stand waived for the period from the 1st day of May, 2022 till the 30th day of June, 2022. * **Difference/Effect of Change:** This amendment provides a specific time window in which the late fee for filing GSTR-4 form for the financial year 2021-2022 will be waived. Taxpayers filing after June 30th, 2022 will still be charged the late fee. **6. Target Audience and Stakeholders:** The primary target audience for this amendment is taxpayers who are required to furnish FORM GSTR-4 under the CGST Act, particularly those who filed, or were planning to file, after the original deadline for the Financial Year 2021-22, but before or on June 30, 2022. This includes composition scheme taxpayers. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance. * **Timelines:** The waiver is applicable specifically for the period from May 1, 2022, to June 30, 2022. * The amendment requires systems to be updated to reflect the waiver of late fees during the specified period for GSTR-4 filings. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this amendment is likely to reduce the financial burden on taxpayers who were late in filing FORM GSTR-4 for FY 2021-22. This promotes compliance by reducing penalties during the specified period. The impact is expected to be a temporary reduction in late fee revenue for the government but can be offset by the promotion of compliance within that timeframe. **9. Conclusion:** Notification No. 07/2022-Central Tax provides a temporary waiver of late fees for GSTR-4 filings for the Financial Year 2021-22 between May 1, 2022, and June 30, 2022. This amendment is a temporary measure providing relief to taxpayers who were delinquent in filing during that time. It signifies the government's responsiveness to potential challenges faced by taxpayers in meeting filing deadlines.

Key Entities Referenced