The NCLT has ruled that a ₹2,500 monthly fee per state for filing nil GST-3B and GSTR-1 returns during Corporate Insolvency Resolution Process (CIRP) is unreasonable and excessive.
NCLT Rules ₹2,500 Fee for Nil GST Returns Excessive
The National Company Law Tribunal (NCLT) has determined that the imposition of a ₹2,500 monthly fee per state for filing nil GST-3B and GSTR-1 returns during the Corporate Insolvency Resolution Process (CIRP) is unreasonable. This ruling emphasizes the principle that while compliance services may be relevant under CIRP, associated costs should remain manageable in relation to the debtor's operations.
The tribunal's decision is grounded in the understanding that fees should not be disproportionately high compared to the financial capabilities of the corporate debtor, especially during processes aimed at rehabilitating the debtor's financial structure.
Legal implications of this ruling benefit practitioners by reinforcing the necessity for reasonable fee structures during insolvency proceedings, impacting how compliance costs are negotiated and agreed upon.
This decision further highlights the tribunal's commitment to ensuring fairness and minimizing obstacles for debtors engaged in resolving financial difficulties.
Citations
- NCLT Order (2026) No. 1448548
