Answer

1. F

   Facts

   The late fee for GSTR-4 is capped at ₹2,000 in total (₹1,000 CGST plus ₹1,000 SGST), or ₹500 in total if there is no tax payable. The portal computes it and you must pay it before filing.

2. P

   Provisions and law

   • Sec 47, CGST Act 2017Late fee for late returns
   • Notification 21/2021-CTGSTR-4 late fee capped at ₹1,000 CGST (₹500 for nil) from FY 2021-22, so ₹2,000 or ₹500 in total with SGST
3. A

   Analysis

   Notification 21/2021-CT caps the late fee from FY 2021-22. The FAQ says you cannot file a late GSTR-4, even a nil one, without paying the late fee in cash. Example: a composition trader with tax paid in CMP-08 files GSTR-4 two months late; the late fee is limited to ₹2,000. Check the latest notification for any waiver or change.

4. C

   Conclusion

   1. 1Let the portal compute the late fee in Table 8.
   2. 2Deposit the amount in the cash ledger through a challan.
   3. 3File GSTR-4.
   4. 4Keep the challan and ARN.

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