GST Return Late Fees & Interest on Belated GST Return Filings

The GST return late fee is a payment paid in accordance with GST regulations for the delayed filing of GST returns. When a taxpayer registered with GST misses the deadlines for filing GST returns, a statutory GST late fee must be paid for each day of the delay. On this late fee, an interest of 18% p.a. is also levied. This payment is to be made in cash where the Input Tax Credit, if available in the electronic credit ledger, cannot be taken into use.

The inability to submit timely zero returns frequently results in a late fee. For example, a late fee must be paid even when no sales have been made by the company. Here, the “no GST” concept needs to be recorded in the GSTR-3B form.

Failure to submit the GST return by the deadline specified by the concerned department is regarded as a violation of the law and is subject to a severe fine. Depending on the kind of return filing, the late fee amount varies. The three groups are -

1. GST non-annual returns late fee
2. Annual GST return late fee
3. Late filing penalties for NIL returns

It must be noted that, at present, late fee can only be charged with respect to GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9

Different types of taxpayers are bound for GST payments on different dates. Some of the due dates of taxpayers are mentioned below -

The late fees and penalties for belated filings of GST are calculated differently for different types of GST forms. The details of the late fee calculations of GST are given below -

The GST returns late fee regulations instruct that taxpayers who fail to meet the deadlines for paying taxes on time should be charged interest at a GST rate of 18% annually. For each day that passes after the due date of the return filing, interest will be calculated.

A late fee of Rs 50 each day (Rs 25 charged for CGST and Rs 25 charged for SGST) for any tax liability and Rs 20 each day (Rs 10 charged for CGST and Rs 10 charged for SGST) in case of zero tax liability is subjected to a cap of Rs 5,000. This amount must be deducted from the provided amount when a taxpayer fails to file returns by the deadlines.

The payments for the GST forms must be made using a challan that is only valid for 15 days. After the payment has been processed correctly, the taxpayer receives a Challan Identification Number.

Challans charged at Rs 10,000 can only be paid offline. It implies that they must pay it through instruments such as cheques, demand drafts, or cash payments. Only challans that exceed a charge of Rs 10,000 can be paid online for the GST returns late fees and interest.

When online transactions for tax, late fees, GST interests or GST return late fees are paid through RTGS, credit cards, NEFT or internet banking, the taxpayer’s electronic cash ledger is credited. Any amount of money that is left over will be used to pay any pending dues, debts, fees or unpaid interest.