GST Late Fees

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.

The GST return in GSTR-3B is filed on January 23, 2019, three days after the prescribed due date of January 20, 2019. The late payments will be assessed for three days and must be paid in cash. However, the GST portal is set up to charge a late fee only on GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7, and GSTR-9 returns.

Late Fee 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 late fees.

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.

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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 GST Late Payment

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.

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. While 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 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.

GST Return Late Fees and Interest – FAQs

Q1. What is the interest on late fees?

In addition to the late fee, interest is paid for non-payment of late payments. Interest at the expense of 18% per annum is added to the gross penalty obligation. This debt is charged by the taxpayer as the taxes are paid. The fees and interest are measured from the due date to the date the return is filed.

Q2. What if I do not file the GSTR?

GST return filing is required for all taxpayers who have a GST registration number. If this requirement is not met, late fines are charged on a per-day basis. If you do not file the GSTR for this month, you will be unable to file the GSTR for the next month. Any day that you are late, INR 200 is deducted from your account. If the taxpayer fails to file his GS return, a limit of INR 5000 in late fees will be accumulated.

Q3. I owe no money to the government as a result of my GST return. Will I send my GSTR?

You should, of course, file the GST back. It is sent as a NIL refund. There are two possibilities for filing a GSTR with no fee. In one example, there could be no purchases or sales during the year, resulting in no transactions. As a result, you will file a NIL transaction refund. Or another scenario, you could have bought products or services but not sold them. As you paid GST when you made the order, you would file GSTR-3B and demand the input tax credit.

Q4. Is it required to file GSTR as a NIL transaction?

Yeah, if you have a GST registration number, you are required to file GSTR. You must file NIL GSTR if you have no buy or selling transaction. Late fines apply if you do not file your GST return on time. The CGST Act charges INR 50 per day, and the SGST Act charges INR 50 per day. As a result, you will be fined INR 100 per day.

Q5. Is it possible to have GST late fees waived?

GST (Goods and Services Tax) In certain cases, late fines will be waived. Otherwise, it is due before filing returns.