Remittance of late fees pursuant to Sec.61 scrutiny Notice, Goods and Services Tax - GST

[RaamSrinivasan Kalpathi]

Facts:

1. The client is located in SEZ

2. Notice received under Sec.61 for remittance of late fees for belated filing of 3B. Notice demanded Rs.1100/- each under category of CGST and SGST.

My query is:

DRC-03 of SEZ GSTN only accepts IGST payments. Can I remit late fees of Rs.2200/- under IGST and inform jurisdictional Suptt? Thanks

Posts / Replies

[YAGAY andSUN]

In the case of SEZ units, GST compliance is handled differently as supplies are zero-rated and IGST is the applicable tax head. The SEZ GST portal typically restricts payments in DRC-03 to the IGST head only, and does not permit separate CGST or SGST payments.

Given this system limitation, it is standard practice to make the full payment of late fees under the IGST head for SEZ GSTINs, even when the demand notice mentions CGST and SGST separately.

After remitting the total late fees amount under IGST, it is advisable to inform the jurisdictional GST officer through a formal letter or email. This communication should clarify that the payment has been made under IGST due to system constraints on the SEZ portal, and that it pertains to the CGST and SGST late fees demanded in the notice. Including a copy of the payment challan as proof will support the record.

This approach helps maintain clarity and ensures the authorities are aware of the payment status without raising any concerns. It is prudent to keep copies of all communications and receipts for future reference.

*** 

[YAGAY andSUN]

To 

The Jurisdictional Officer,

GST/SEZ 

Address

Subject: Payment of Late Fees under IGST Head for Demand Notice under Section 61 – SEZ GSTIN [Client’s GSTIN]

Respected Sir/Madam,

This is to inform you that we have received a notice under Section 61 dated [Date of Notice] regarding payment of late fees amounting to Rs. 1100 each under CGST and SGST, totaling Rs. 2200, for belated filing of GSTR-3B for the period [mention period].

Please note that the client’s GST registration is under the Special Economic Zone (SEZ) jurisdiction, where the DRC-03 challan system only permits payment of dues under the IGST head. Consequently, the total late fees amount of Rs. 2200 has been paid under the IGST head on [Date of Payment], Challan No. [Challan Number].

In view of the above, we kindly request you to update your records accordingly. We are enclosing herewith a copy of the payment challan for your reference.

We seek your understanding regarding the payment made under IGST head due to system constraints and request you to consider the dues as cleared.

Please let us know if any further information or clarification is required.

Thank you for your attention.

Yours faithfully,
[Your Name]
[Designation]
[Contact Number]
[Email ID]
On behalf of [Client’s Name]

[Ganeshan Kalyani]

You may intimate the department of such system limitation before making the payment. It would keep them informed about your action of complying to the notice but under different head.