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November 7, 2022

Late Fees and Interest for Late GST Return Filing

GST Return,GST Return Filing,GST act,Nil returns,returns filed,GSTR 3B,GSTR 1,GSTR 9,GSTR 3b late fee

A delay in GST Return Filing attracts a monetary penalty called Late fee.

As per the GST act, a delay in GST Return Filing attracts a monetary penalty called Late fee. The penalty amount is determined depending on the types of returns filed and the number of days past the due date that the payment is late. The taxpayer cannot use the Input Tax Credit (ITC) offered in the digital credit ledger to pay the late fee; it must be paid in cash separately. The late fee is also charged when filing nil returns late.

Late Payment of GST also attracts Interest along with Late Fees. Every taxpayer registered under GST delaying the filing returns and/or deferring the payment must pay the GST along with interest.

Listing down the amount and charges to be paid for late fees and interest respectively.

Late Fees under GST

According to the most recent changes to the GST Act, the late filing penalty for intrastate and interstate supplies is now Rs. 50 per day,

  • *Rs. 25 per day under the CGST
  • *Rs. 25 per day under the SGST

The maximum GSTR 1 and GSTR 3b late fee that can be charged depending on the annual turnover slab, is as follows :
If the annual turnover in the previous year was less than Rs 1.5 Crs, then the late fee of a maximum of Rs 2,000 per return can be charged. ( 1000 each for CGST and SGST)

If the turnover is between RS 1.5 crore and 5 crores, then the maximum limit is RS 5,000 per return. ( RS 2500 each for CGST and SGST )

If turnover exceeds RS 5 crore, then the maximum late fee is Rs 10,000( Rs 5,000 each for CGST and SGST).

GST Late Fees for GSTR 9

The following are the penalties for filing GST annual returns late:
The taxpayer must pay a late fee of Rs. 200 per day, or Rs. 100 per day under the CGST Act and Rs. 100 per day under the SGST Act.

Late Fees for Late NIL Return Filing

GST nil return filing charges for GSTR 1 and GSTR 3b for interstate and intrastate supplies is Rs 20 per day,

  • *Rs 10 per return under CGST
  • *Rs 10 per return under SGST

The maximum late fee charged, in case of nil GSTR 1 and GSTR 3b, shall be capped at Rs 500 per return ( Rs 250 each for CGST and SGST)

INTEREST IN LATE GST FILING

When GST payments are made after a specified due date, interest is imposed. In the following situations, taxpayers typically pay interest:

  • *a delayed GST payment after the due date – an interest of 18 percent per annum, applicable from the next day of the due date.
  • *When the taxpayer avails excess input tax credit or diminishes excess output tax liability – an interest of 24 percent per annum is imposed.

Consequences of Non-Filing of GSTR 1 and GSTR 3b other than Penalties

In addition to the above-mentioned late fees and interest, the registered taxpayer will also be subject to more severe consequences if Forms GSTR-3B and/or GSTR-1 are not filed. Form GSTR-3B and Form GSTR-1 filing are connected. The registered person will not be able to provide another return if he fails to provide one of the returns.

To ensure small and medium enterprises comply with GST norms more comfortably, On 43rd GST Council reduced the late Fees on GST payments which are listed above. Still, if business owners are finding it difficult to adjust to GST Compliance, one can contact at HostBooks at 8800293663 where the queries will be directly handled by experts with the right solution according to their needs.

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