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All About GST Late Fees

gst late fees

What Is GST Late Fees?

The Goods and Services Tax is an integrated tax system that came into effect on July 1, 2017, and incorporated many indirect taxes. The government has announced the GST payment deadlines.

Each person registered for GST is required to file GST returns by the government-mandated deadlines. If taxpayers do not submit the return on the due date, they must pay GST late fees and interest in addition to the GST return filing fee. Even if there is no activity, taxpayers will be required to file zero returns.

List of Late Fees Changes:

If a registered taxpayer does not file a GST return on the due date, the Government of India levies a late fee. The following are the late fees for various GST returns.

GST ReturnsReturn TimeframeGST Late Fees
GSTR-1From July 1, 2017, onwardsLate Fee Reduction
GSTR-1 filed from 22 Dec 2018 to 31 Mar 2019July 2017 to September 2018Completely waived off
GSTR-1 in certain regionsJuly 2019For taxpayers in certain flood-affected districts of flood-affected states, and all districts of J&K has been completely waived off.
If you file your GSTR-1 between the 19th December 2019 and the 10th January 2020From July 2017 to November 2019Completely waived off.
GSTR-1March 2020  to April 2020 Completely waived if filed before the specified dates of June-July 2020.
GSTR-3BFrom July 2017 to September 2017Completely waived if filed before the specified dates of Dec. 22, 2018.
GSTR-3BFrom Oct. 2017 onwardsLate Fee Reduction
Those who submitted TRAN-1 on the GST portal had yet to file GSTR-3B, but could not file by December 27, 2017.From Oct. 2017 to April 2018Completely waived off.
Due to a technical glitch, the GSTR-3B submission was completed but not filed.Only available for October 2017Completely waived off.
GSTR-3B filed from 22 Dec 2018 to 31 Mar 2019From Jul. 2017 to Sept. 2018Completely waived off.
GSTR-3B filed after 31 March 2019From Jul. 2017 to Sept. 2018Late Fee Reduction
GSTR-3BFrom Oct. 2018 onwardsLate Fee Reduction
GSTR-3BFrom Feb. 2020 to Apr. 2020Completely waived if the application is filed before the specified dates of June-July 2020.
GSTR-3B1. Between Feb 2020 and Apr 2020, businesses with revenue of more than Rs 5 crore.
2. With a turnover of Rs 5 crore or less (Feb 2020 – July 2020).
3. For July 2017 to January 2020, still pending.
1. & 2. Completely waived if filed before the delayed specified filing dates of June-Sept. 2020.
3. For July 2017 to January 2020, still pending.
GSTR-3BBetween May 2020 and July 2020, businesses with a revenue of more than Rs 5 crore
Businesses with a revenue of below or equal to Rs 5 croreFrom February to July 2020
For returns filed after the specified dates, the upper limit late fee will be Rs 500, but no return will incur a late fee before September 30, 2020.
GSTR-4From July 1, 2017, onwardsLate Fee Reduction
GSTR-4 filed from 22 Dec 2018 to 31 Mar 2019July 2017 to September 2018Completely waived off
GSTR-4 filed from 22 Dec 2018 to 31 Mar 2019From Jul, 2017 to Sept. 2018Completely waived off.
GSTR-4 filed after 31 March 2019From Jul, 2017 to Sept. 2018Late Fee Reduction
GSTR-4From Oct, 2018 onwardsLate Fee Reduction
GSTR-5, 5AFrom July 2017 onwardsLate Fee Reduction
GSTR-5AReturns filed on or after the 7th of March 2018 for July 2017 and onwardsComplete late fee is applicable.
GSTR-6From Jul. 2017 onwardsLate Fee Reduction
GSTR-6 documents filed between January 1st and January 23rd, 2018For any tax period commencing before January 2018Completely waived off.
GSTR-6Jul. 2019For taxpayers in certain flood-affected districts of flood-affected states and all districts of J&K, has been completely waived off.

How To Calculate GST Late Fee:

You can use the GST late fees calculator to figure out how much you repay in late fees. The following is a comprehensive list of GST. Under the GST system, late fees, fines, and penalties are all payable. GST late fee calculation is required if you do not file your GST Returns by the due date. The following table summarizes the GST late fee calculation from July 2017 to April 2021.

The GSTR 3B, the GSTR 1, and the GSTR 4 (if sales)50 rupees per day, up to a maximum of 10,000 rupees
The GSTR 3B, the GSTR 1, and the GSTR 4 (Nil GSTR 9 and GSTR 9A)20 rupees per day, up to a maximum of 10,000 rupees
GSTR 9, 9ARupees 200 per day with a maximum turnover of 0.5 percent
GSTR 10 (Final Return)200 rupees per day

How To Pay GST Late Fee To The Government Using GST Portal (myBillBook)

  1. At gst.gov.in, you can access the GST Portal. Use your username and password-relevant information to log in to the portal. Alternatively, install the myBillBook app on your phone and you can easily access the percent GST portal. When this is done one time, you can freely access any number of times without worrying about the username and password.
  2. After logging into the GST Portal, click on ‘Services.’ Select ‘Returns’ from the ‘Services’ menu, followed by ‘Returns Dashboard’.
  3. The ‘File Returns’ page is displayed after you click the ‘Returns Dashboard’ option. Then choose the Financial Year and Filing Period (Month) which you wish to file the return from the drop-down menu of the appropriate fields on the ‘File Returns’ page. After entering the required information in the fields, click the ‘Search’ button.
  4. Then the page titled ‘File Returns’ is displayed. You must click the ‘Prepare Online’ checkbox in the ‘Monthly Return GSTR 3B’ tile.
  5. That after your click on the ‘Prepare Online’ checkbox, a set of questions will appear. After answering all crucial questions, press the ‘Next’ checkbox. You will have access to all relevant tables in Form GSTR-3B.
  6. All relevant tiles will be accessible on this page for you to complete the details. The applicable late fee will be automatically updated by the GST portal when GST returns are submitted.
  7. After saving Form GSTR-3B, you must click on the ‘Proceed To Payment’ button. After clicking ‘Proceed To Payment,’ the cash and ITC balances as of the current date are displayed.
  8. This step allows you to specify the amount of credit used from the various available credit lines to pay off the liabilities, such as cash.

Interest under GST Late Fee:

GST late payment with interest refers to an additional amount that the taxpayer must pay if he or she does not make the GST payment when filing GSTR 3B.

When a late fee in GST is accrued, interest is charged on late payments that are not paid. Interest at the rate of 18 percent per annum is applied to the total penalty liability. The taxpayer is responsible for paying this interest when the fees are paid. Fees and interest are calculated from the due date to the date of actual return filing.

Interest is calculated on the gross amount of GST liability. Interest from the following day on which tax was due should be calculated.

Delayed GST paymentAt an annual rate of 18%
Reducing or eliminating an increase in tax liabilityAt a rate of 24 percent per annum
ITC claims or additional claimsAt 24 percent per annum

FAQs on GST Late Fee 

Q1. Is it required to file GSTR as a zero-value transaction?

Ans: Yes, you are required to file GSTR. If you do not submit your GST return on time, late charges apply.

Q2. Is interest charged on late fees for GSTR payments?

Ans: Yes. This interest is calculated for the period between the actual due date and the date of payment of the return.

Q3. Is it possible to charge GST on interest?

Ans: Not at all. This is because the GST does not implement the concept of double taxation.

Q4. How can I avoid paying GST late fees?

Ans: Submit your GST return on or before the due date.

Q5. Is it possible to waive GST late fees?

Ans: Yes, if necessary, the government can issue notices to GST late fee waiver with the late charges.

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