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Annual return GSTR-9 and GSTR-9C, under section 44 of CGST Act, due date stands extended for financial year 2019-20 from 3:

ESIC Default Clearance

Consequences of Non-Payment or Late Payment of Employees' Contribution

Amount deducted from employee’s wages as an employee contribution is deemed to have been entrusted to the employer which implies that the employer has a higher responsibility to deposit the contribution with ESI.

  • Non-payment or late payment of the Employee's contribution deducted from the wages of the employee results in ‘Criminal Breach of trust’ which is punishable under IPC Section(s) 406, 409 and also an offence u/s 85 (b – g) of ESI Act.
  • Non-payments, late payments, or misleading payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine of up to Rs 5,000.

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Consequences of Delayed Payment

An employer who fails to pay the contribution within the time limit specified in the regulation shall be liable to pay a simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.

Penal Provisions for Non-Payment or Delayed Payment of Contribution

The Corporation may impose and recover damages as per the Regulations, at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.

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