GST officers send demand notices to firms for as low as Rs 2, says report

These notices have been sent to firms who have filed GSTR 3B return for the period after due dates in which paid interest liability has not been calculated under Section 50 of CGST Act, 2017.

These notices may frighten payers and ease of doing business is likely to suffer, tax experts were quoted as saying in Business Standard report.

According to the GST rules, GSTR-3B is a monthly self-declaration to be filed by a registered GST dealer along with GSTR 1 and GSTR 2 return forms. The due date for submission of GSTR-3B every month is the 20th of the succeeding month.

Registered businesses are required to file GSTR-1 irrespective of whether there are any transactions during the month or not. Firms are asked to pay it by the eleventh day of the following month. Late fees for GSTR-1 is Rs 200 (Rs 100 for CGST and Rs 100 for SGST) per day.

Law provides for a levy of 18 percent penal interest. CBIC has clarified taxpayers can pay part of liabilities in cash and rest through adjustments in input tax credit, according to the report.