Answer

1. F

   Facts

   Late fee under Sec 47 is ₹50 a day (₹25 CGST plus ₹25 SGST) for each late return, and ₹20 a day for nil returns. Caps apply by previous year turnover: ₹2,000 up to ₹1.5 crore, ₹5,000 from ₹1.5 crore to ₹5 crore, and ₹10,000 above ₹5 crore, and ₹500 for nil returns. Late fee is paid only in cash.

2. P

   Provisions and law

   • Sec 47, CGST Act 2017Late fee for delay in filing returns
   • Notification 19/2021-CTReduced late fee caps for GSTR-3B by turnover slab
   • Notification 20/2021-CTReduced late fee caps for GSTR-1 by turnover slab
3. A

   Analysis

   Take a trader with turnover of ₹1 crore who files the July return 90 days late. The fee is 90 x ₹50 = ₹4,500, but the cap for his slab is ₹2,000, so he pays ₹2,000 for that return. If three months are late, each return carries its own fee, and GSTR-1 for the same months carries a separate fee too. The portal adds the late fee in the next GSTR-3B automatically, and it cannot be paid from the credit ledger.

4. C

   Conclusion

   1. 1List every pending GSTR-1 and GSTR-3B by month
   2. 2Work out the fee per return using the cap for your turnover slab
   3. 3Deposit the late fee and interest in the cash ledger through PMT-06
   4. 4File the oldest return first, since later returns are blocked until earlier ones are filed

Late fee cannot be set off against ITC; keep cash in the ledger before you start filing old returns.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.