GST Return Late Fees and Interest

The late fee, according to GST rules, is a sum paid for the late filing of GST returns. When a GST Registered company fails to file GST Returns by the prescribed due dates, a prescribed late fee will be paid on each day of error. The late fee must be charged in cash, and the taxpayer cannot use the Input Tax Credit (ITC) available by electronic credit ledger to cover the late fee.

The late fee often applies to the failure to file Zero returns on time. For eg, even though there are no sales or transactions and no GST obligation to report in GSTR-3B, a late fee must be paid.

Taxpayer Due Dates

Here are the types of taxpayers and the due dates for the GST payments

Type of Taxpayer

  1. General Citizen – 20th of the Next Month
  2. Composition – 18th of the Next Month or Quarter
  3. Non-Resident – 20th of the Next Month
  4. Input Service Distributor – 13th of the Next Month
  5. TDS Deductor – 10th of the Next Month
  6. TCS Collector – 10th of the Next Month

GST Late Fees Calculation

Late Fee for GSTR 3B:

GSTR-3B late payments are Rs. 20 (Rs. 10 for CGST and Rs. 10 for SGST) per day for NIL returns and Rs. 50 (Rs. 25 for CGST and Rs. 25 for SGST) in all other scenarios. A NIL return is one in which there are no transactions but there are acquisitions. The maximum penalty is Rs. 10,000 (Rs. 5,000 for CGST and Rs. 5,000 for SGST) for each return.

Late payments for GSTR-3B for a month to be charged in the next month. You cannot file a month’s return unless you have paid the prior month’s GST late fee waiver.

Late Fee for GSTR 1:

Late fees for GSTR-1 are Rs. 200 a day (Rs. 100 for CGST and Rs. 100 for SGST). Currently, the government would not accept late payments for GSTR-1. GSTR-1 was not taken into account in this calculator.

Late Fees for GSTR-9 and GSTR-9A:

Late fees for GSTR-9 and GSTR-9A are Rs. 200 per day (Rs. 100 for CGST and Rs. 100 for SGST) up to a limit of 0.50 percent (0.25 percent for CGST and 0.25 percent for SGST) of turnover.

Late Fees for GSTR-10:

Late fees for GSTR-10 are Rs. 200 a day (Rs. 100 for CGST and Rs. 100 for SGST). There is no upper limit to the size of the penalty. Late payments must be charged for the return to be filed.

Interest on Late Payment of GST:

According to the GST Penalty rules, taxpayers who refuse to pay their taxes on time will be paid interest at the rate of 18% per annum. Interest will be charged for the days after the due date.

Penalty on Missing the GST Due Date:

When taxpayers fail to file returns within the prescribed due dates, he is obligated to pay a late fee of Rs. 50/day, i.e. Rs. 25 per day in each case of CGST and SGST (in case of any tax liability) and Rs. 20/day, i.e. Rs. 10/- day in each CGST and SGST (in case of Zero tax liability), subject to a limit of Rs. 5000/-, from the provided amount.

Rules Applicable of GST Payment for Taxpayers

  • If payment for tax, interest, penalty, and fee is made through internet banking, credit card, NEFT, or RTGS, the electronic cash ledger will be credited. The balance will be used to pay any outstanding interest, fee, or liability in the taxpayer’s electronic cash ledger.
  • Payment for the GST PMT-06 form is made via challan, and the challan is only valid for 15 days. A Challan Identification Number (CIN) is provided when the payment is effective. If the CIN is not generated, the taxpayer can file Form GST PMT-07.
  • And after 8 p.m., online fees will be transferred to the taxpayer’s account the next day. Although no physical challans will be approved for GST payments, challans will be generated from gst.gov.in only for all payments of taxes, fines, penalties, and interest.
  • Payment of challans under 10000 rupees may be made over the counter with currency, cheques, or demand draughts through approved banks, while payments exceeding 10000 rupees can be received only digitally.
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