A representation has been sent to CBIC requesting Waiver of late fees for non- filing of annual return ( GSTR-4) by composition dealers. We understand that many of your clients may be facing the same problem of non- filing of GSTR-4 due to which late fees would be levied on them. You may consider to submit a letter to CBIC on similar lines, in the interest of the small traders

Dear professional colleagues,

A representation has been sent to CBIC requesting Waiver of late fees for non- filing of annual return ( GSTR-4) by composition dealers.  We understand that many of your clients may be facing the same problem of non- filing of GSTR-4 due to which late fees would be levied on them. You may consider to submit a letter to CBIC on similar lines, in the interest of the small traders.

To
The Chairman (CBIC)
North block
New Delhi

Subject: Requesting for Waiver of late fees for non- filing of annual return ( GSTR-4) by composition dealers

Finance bill 2022 vide Clause no 100 has proposed to cancel GST registration of all composition dealers if their annual return not filed beyond 3 months of the due date of annual return, instead of 3 consecutive tax periods earlier.

Non Filing of annual return by composition dealers is liable for late fees as follows:

For composition dealers there is no exemption in limit of turnover for filing annual return, as in case of dealers in normal regime are exempted from filing annual return, if their turnover is upto Rs 2 crore.

In view of proposed amendment, large number of composition dealers, who have not filed their annual return earlier on time, will come forward to file their overdue annual returns, and hence, will be liable to pay late fees upto Rs 22,000 for 3 years.

We hereby request for one time waiver of late fee for non-filing of annual returns by composition dealers for following reasons:

1. Composition dealers are small traders not able to afford cost of consultants, so filing their GST return with their little knowledge.
2. They are filing their GST returns and paying due tax regularly.
3. Late filing fees 22,000 for such small traders will be a big burden upon them.
4. Further cancellation of GST No. for non-filing of Annual return will further aggravate their problems.
5. Non-filing of Annual return by Composition Dealers has not, in any way, been prejudicial to the interest of revenue.
6. Proper officer of Composition Dealers should have been reminded Composition Dealers for non-filing of Annual Return.
7. The proposed amendment by finance bill 2022 if enacted in 2018 would not have created pendency in submission of annual return.

In view of above submissions, your good self is requested to waive late fees for all Composition Dealers as one time relaxation for better compliance.

Thanking you,

Yours sincerely,

XYZ