gst billing software need
Why Does Your Business Need Proper GST Billing Software?
April 27, 2023
Reverse Charge Mechanism (RCM) on GST with Journal Entry [2024]
June 26, 2023

GSTR 3B Late Fees: Penalty, Due Date, and Interest

GSTR 3B Late Fees

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

What is Late Fees for GSTR 3B?

GSTR 3B late fees is a charge paid for a tax period after due date depend upon normal GSTR 3B returns and nil returns. Late fees for Normal GSTR 3B Returns is ₹ 50 per day and for Nil Returns is ₹ 20 per day. Let’s see it in table.

Late Fees for Normal GSTR 3B Returns₹ 50 Per Day
Late Fees for Nil Returns₹ 20 Per Day

Every month (quarterly for the QRMP scheme), taxpayers are required to file GSTR-3B, which is a summary GST return that is self-declared. This return mandates that taxpayers report the summarized figures of their sales, input tax credit (ITC) claimed, and net tax payable.

For Example:

If the prescribed due date of filing the GST return under GSTR-3B is 20th January and a business files the return on 25th January, then the amount of late fee to be paid by the business would be for 5 days.

  • If its normal return, the amount payable would be 5 * ₹ 50= ₹ 250.

  • If its Nil Return, the amount payable would be:

    Nil Return: A Nil return in GSTR-3B refers to a situation where a taxpayer who is registered under the Goods and Services Tax (GST) regime has not made any outward supplies (sales) nor has any purchases or expenses that are eligible for input tax credit (ITC) during the relevant tax period. In such a scenario, the taxpayer is not liable to pay any tax or claim any ITC. However, the taxpayer is still required to file a GSTR-3B return by providing a declaration of ‘nil’ sales, ITC, and tax liability.

Note: Use GST Penalty Calculator to Calculate late fee in one click.

Maximum Late Fee for GSTR 3B

The maximum late fee for filing GSTR-3B, except for nil filing, is determined based on the annual turnover slab. It is summarized in the table below.

Name of the ActIf Annual Turnover is less than ₹ 1.5 CrIf Annual Turnover is between ₹ 1.5 Cr and ₹ 5 CrIf Annual Turnover is over ₹ 5 Cr
CGST₹ 1000/return₹ 2500/return₹ 5000/return
SGST₹ 1000/return₹ 2500/return₹ 5000/return
Total Fee paid₹ 2000/return₹ 5000/return₹ 5000/return

Note:

  • The Maximum late fee is for each return. If there are two returns pending, say January and February, then you must pay late fee for each.
  • GSTR 3B Maximum late fees for Nil return filing is rs 500 per return (CGST ₹ 250 and SGST ₹ 250)

Due Date for GSTR-3B

The GSTR 3B filing due date depends on the annual turnover of your company in the previous year.

  • T/o less than 5 Cr: If the turnover of your company in the previous year was less than 5 crores, the deadline for filing GSTR-3B is the 20th of the subsequent month. For example, the return for the month of April 2023 is due on 20th May 2023.
  • T/o More than 5 Cr: If the turnover of your company in the previous year was equal to or more than 5 crores, the deadline for filing GSTR-3B is the 22nd of the subsequent month. For example, the return for the month of April 2023 is due on 20th May 2023.

You can avoid any late fee penalties by using HostBooks GST software to file their returns on time.

GST Late Fees for GSTR 9

The late fee incurred on a business under form GSTR 9 is the following:

Name of the Act(Goods and Services Act, 2017)Taxpayers with annual turnover up to ₹ 5 CrTaxpayers with annual turnover between ₹ 5 Cr and ₹ 20 CrTaxpayers with an annual turnover of over 20 Cr
Central GST₹ 25₹ 50₹ 100
State and Union Territory GST₹ 25₹ 50₹ 100
Total Fee₹ 50₹ 100₹ 200
Max. charged late fee0.04% turnover in state and UT0.04% turnover in state and UT0.25% turnover in state and UT

Late Fees for Late NIL Return Filing

Late Fees for Late NIL Return Filing

The Nil return is one where there are no transactions taking place but there are acquisitions happening.

GST nil return filing charges for GSTR 1 and GSTR 3b for interstate and intrastate supplies is

Name of the ActLate Fee /Day
Central GST₹ 10
State GST₹ 10
Total Fee₹ 20

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

Late Fee for GSTR 10

Below is the list of late fee on GSTR 10.

Name of the ActLate Fee /Day
Central GST₹ 100
State GST₹ 100
Total Fee₹ 200

Penalty for Late Filing of GSTR 3B

Penalty for Late Filing of GSTR 3B

Besides the late fees for GSTR-3B, GSTR 10 and GSTR 9 , there is interest charged on late deposit of taxes. The interest is calculated for late payment of GST liabilities and applied to the net tax liability after lowering the claims of the input tax credit. The interest is paid by every taxpayer who:

  • – Pays the GST late i.e., paying CGST, SGST, or IGST after the due date of filing is over.
  • – Makes input tax credit claims.
  • – Decreases the extra output tax liability.

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.

Late fees and interests are crucial aspects of GST Law. These are attracted in case of any delays in the submission of the GST returns. The amount of penalty is determined by the types of returns filed and the number of days past which the return is files and payment is deposited.

Points to Remember

  • Taxpayers cannot use the Input Tax Credit (ITC) offered in the digital credit ledger to pay the late fee.
  • The late fee is also charged when filing nil returns late.
  • The late fee system is such that for each day of delay in filing GST, the business is charged an additional late fee.
  • 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.

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.

FAQs about filing late GST returns

1. Do I need to file the GST returns, what happens if I don’t file them?

If you decide to not file the GST returns then a late fee would be applied for every day of the default. Any due tax would attract an interest of 18% per annum.

2. What is the late fee for GSTR 3B?

For GSTR 3B the late fee is INR 20 (INR 10 CGST and INR 20 SGST), and for late nil returns its INR 50 (INR 25 CGST and INR 25 SGST)

3. What if I don’t pay a late fee of GST?

The late fee gets added to the next GST filing and the Government would not allow you to continue filing any GST returns and simply bar you from operating your business

4. How to deposit GST to the government?

The late fee that is supposed to be deposited to the government would be calculated automatically by the GST portal while making the submission of the GST returns. The late fee for the month would include the late fee for the previous month which would be charged due to delay in return filling. Further, the late fee for return filing would attract additional interest

5. What happens if I file GSTR 3B late?

If you file GSTR 3B late you will need to pay late filing fee for each delayed day until it reaches the maximum limit. For nil returns, the late fee is ₹ 20 per day of delay, while for other returns, it is ₹ 50 per day of delay.

7. How can I calculate the interest and late fees for GSTR 3B?

Too calculate the interest and late fees for GSTR 3B, you need to follow the following formula:

  • Late fee = ₹ 20 (For Nil returns) / ₹ 50( for other returns) * Number of days in delay
  • Interest = Tax payable x 18 x Number of days of delay / 100

If you are facing any trouble solving your business needs, then HostBooks is the answer to it. We take care of all your financial problems like accounting, GST, TDS, E-invoicing, E-way bills etc. and provide you with a smooth, smart, complete, reliable and cost-effective experience through our all-in-one accounting software. Also, you can contact us at – 8800293663.

Disclaimer: The information provided in this blog to the best of our knowledge and based on the latest rules at the time of writing. However, the information is subject to change, and we do not guarantee its completeness, accuracy, or timeliness. The blog is intended for general information purposes only and should not be construed as legal, financial, or professional advice.

Leave a Reply

Your email address will not be published. Required fields are marked *

− 1 = 1

super-app

Try HostBooks
SuperApp Today

Create a free account to get access and start
creating something amazing right now!

gsp-stamp gsp-stamp safe-to-host