When a Registered Dealer misses filing GST Returns within due date late fees is levied by the government.
GSTR-1 due date for the months of July to Nov 2017 (monthly) and July to Sept 2017 (quarterly) was 10th Jan 2018. If GSTR-1 is not filed within this due date you will be liable to pay late fees of Rs. 200* for every day of delay.
Also, non-payment or late payment of GST attracts Interest.
* Subject to change via CBEC notifications
Late Fees on GST Returns
When a GST Return is filed after the due date, late fees to be applicable.
Latest Updates
- CBEC withdraws the reduction in Late fees for GSTR-5A charged for delay in return filing with effect from 7th March 2018.
This means that the late fees to be paid by taxpayers for late-filing of GSTR-5A now stands at a total of Rs. 200 per day of delay (Rs. 100 per day of delay for NIL return) subject to the maximum cap in the late fees at Rs. 5,000
As on 7th March 2018, the reduced late fees for other returns such as GSTR-1, GSTR-3B(October 2017 onwards), GSTR-4, GSTR-5 & GSTR-6 continue to apply.
- Earlier Notifications: The government has reduced the late fees for GSTR-1, GSTR-3B(October 2017 onwards), GSTR-4, GSTR-5, GSTR-5A and GSTR-6 as follows (until further notifications late fees will remain the same):
Note that the maximum late fees that can be charged cannot exceed Rs 5,000.
For example, a Taxpayer has filed GSTR-3B for the month of December 2017 (due date 20th Jan 2018) on 23rd January 2018.
Amount of late fees to be paid:
Rs. 50 per day * 3 days = Rs. 150 (Rs. 75 CGST + Rs. 75 SGST)
If the above return was a return with ‘Zero’ tax liability then late fees will be:
Rs. 20 per day * 3 days = Rs. 60 (Rs. 30 CGST + Rs. 30 SGST)
Late Fees for GSTR-3B of July to September Waived
The government has waived late fees for GSTR-3B from July to September 2017. Any late fees paid for these months will be credited back to Electronic Cash Ledger under Tax. This can be later utilized for payment of GST Liability.
For example, a taxpayer files his GSTR-3B for the month of July, 3 days after due. He had to pay a late fee of Rs. 600 (Rs 200 per day * 3 days). This amount will be refunded in the taxpayers Electronic Cash Ledger
Late Fees for GST Return as per GST Act*
- All returns except Annual Returns: Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of Rs 5,000.
- Annual Returns: Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of 0.25% of Turnover.
Interest on Late Payment of GST Due
Interest has to be paid by every taxpayer who:
- Makes a delayed GST payment i.e. pays GST after the due date.
- Claims excess Input Tax Credit
- Reduces excess Output Tax Liability
Currently, GST has to be paid at the time of filing GSTR-3B and GSTR-4.
If GST is not paid within the due dates of filing return Interest at following rates has to be paid:
| Particulars | Interest |
| Tax paid after due date | 18% p.a. |
| Excess ITC Claimed or excess reduction in Output Tax | 24% p.a. |
The Interest has to be calculated from the next day on which tax was due.
For example, a taxpayer fails to make a tax payment of Rs. 10,000 for the month of December 2017 (due date -20th Jan 2018). He makes the payment on 20th Feb 2018. Interest will be calculated as follows:
Rs. 10,000 * 31 days/365 * 18% = Rs. 153
Thus it is important to make tax payment and file GST Return within due dates. ClearTax GST Software is a one-stop solution to file GST Returns quickly and easily. Use ClearTax GST Software and never miss a deadline.
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