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Late Fees and Interest on GST Return

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Late fees and Interest forms important components of the GST payment and is incurred by business in case of delay in submitting or filing GST returns. The article covers all latest announcements on Late fees and Interest charge in a comprehensive manner!

The following must be deposited to the government in case of delay in filing of GST returns

Latest Updates

30th June 2020

The maximum late fee to be capped at Rs 500 per return, for the tax periods given below, filed after the deadlines given in notification 52/2020 (as listed in the below at sl no 2 dated 24th June 2020) but before 30th September 2020, whereas nil return to not be charged any late fee.

  1. For turnover more than Rs 5 crore: May 2020 – July 2020
  2. For turnover equal to or below Rs 5 crore: February 2020 – July 2020

24th June 2020

1. The CBIC has waived/reduced late fees for the late filing of GSTR-3B returns for the period July 2017 to January 2020, as follows-

a) If GST liability is Nil, and the GSTR-3B return is filed between 1st July, 2020 and 30th September, 2020, then the amount of late fees stands waived.

b) If the GST liability is not Nil, and the GSTR-3B return is filed between 1st July, 2020 and 30th September, 2020, then the amount of late fees stand waived in excess of Rs.250* under the CGST Act.

*Rs.500 will be the total amount payable, Rs.250 under CGST and Rs.250 under SGST.

 

  1. The CBIC has notified the due dates applicable, with regard to interest and late fees for filing GSTR-3B. Here is a list of the notified dates from February to August 2020:
Annual Turnover in the Previous FY Period       Due date Last date without late fee or interest, as applicable
More than Rs.5 crore Feb 2020 20th Mar 2020 24th Jun 2020*
Mar 2020 20th Apr 2020
Apr 2020 20th May 2020
May 2020 27th Jun 2020^^ 27th Jun 2020
Jun 2020 20th Jul 2020 20th Jul 2020
Jul 2020 20th Aug 2020 20th Aug 2020
Aug 2020 20th Sept 2020 20th Sept 2020
Up to Rs. 5 crore in category A# States/UTs Feb 2020 22nd Mar 2020 30th Jun 2020^
Mar 2020 22nd Apr 2020 3rd Jul 2020^
Apr 2020 22nd May 2020 6th Jul 2020^
May 2020 12th Jul 2020 12th Sept 2020^
Jun 2020 22nd Jul 2020 23rd Sept 2020^
Jul 2020 22nd Aug 2020 27th Sept 2020^
Aug 2020 1st Oct 2020** 1st Oct 2020
Up to Rs. 5 crore in category B## States/UTs Feb 2020 24th Mar 2020 30th Jun 2020^
Mar 2020 24th Apr 2020 5th July 2020^
Apr 2020 24th May 2020 9th July 2020^
May 2020 14th Jul 2020 15th Sept 2020^
Jun 2020 24th Jul 2020 25th Sept 2020^
Jul 2020 24th Aug 2020 29th Sept 2020^
Aug 2020 3rd Oct 2020** 3rd Oct 2020
#Category A: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.

 

##Category B: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.

 

*No interest charged if GST dues are paid before 4th Apr, 5th May and 4th Jun for Feb, Mar & Apr respectively. But, interest applies from the 16th day at a reduced rate of 9% p.a. up to the date of actual payment, if paid before 24th Jun 2020. If not, then interest is charged in a staggered manner as given above plus interest at 18% p.a. will apply from the next day after 24th Jun 2020 up to the actual date of filing. In that case, a late fee will apply from the due date until the actual date of filing.

 

^^The due date was extended via CGST notification no. 36/2020 dated 3rd Apr 2020.

 

^Thereafter, a reduced interest rate at 9% p.a. will apply if taxpayer files on or before 30th Sept 2020. If not, then interest applies in a staggered manner as given above plus interest at 18% p.a. will apply from the next day after 30th Sept 2020 up to the actual date of filing. In that case, a late fee will apply from the due date until the actual date of filing.

 

**The due date was extended via CGST notification no. 54/2020 dated 24th Jun 2020. 

8th June 2020

A nil GSTR-3B can be filed via SMS using the registered mobile number and OTP verification. The CBIC has notified the date of applicability as 8th June 2020, from which nil returns can be filed through SMS.

23rd March 2020

For businesses with less than Rs 2 crore aggregate turnover in FY 2017-18 and FY 2018-19, no late fee will be charged for the delayed filing of GSTR-9.*

*CBIC notification is due.

10th January 2020

The late fee waiver for GSTR-1 for the period July 2017 to November 2019, further extended till 17th January 2020 from 10th January 2020.

26th December 2019

The late fee waived off for GSTR-1 for the period July 2017 to November 2019, if the taxpayer submits the return before 10th January 2020.

31st August 2019

The late fees for July 2019’s GSTR-1(filed monthly) and GSTR-6 have been waived off for the taxpayers having a principal place of business in certain districts of the flood-affected States of Bihar, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, and Uttarakhand and all districts of J&K.

 

All about Late Fees under GST

 

As per GST laws, the Late Fee is an amount charged for delay in filing GST returns. It can be referred to as an overdue fine.

 

When a GST Registered business misses filing GST Returns within the prescribed due dates*, some amount of late fees is charged. The late fee is also applicable for the delay in filing NIL returns. For example, there are no figures to declare for sales or purchases for the month of December 2018 in the GSTR-3B. Still, this return must be filed.

 

The amount will depend upon the number of days of delay from the due date. GST return in GSTR-3B is filed on 23rd January 2019, 3 days after the prescribed due date i.e 20th January 2019. Late fees will be calculated for three days and deposited in cash.

 

However, currently, the GST portal is aligned to charge a late fee only on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9 only.

 

Amount of Late fees applicable

 

FOR ALL GST RETURNS EXCEPT GST ANNUAL RETURNS(GSTR-9)

  • As per the Acts, for intra-state supplies, both the CGST and SGST Act prescribes following late fees:

 

Name of the Act Late fees for every day of delay
Central Goods and Services Act, 2017 Rs 100*
Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 Rs 100*
Total Late fees to be paid Rs 200*
The law has fixed a maximum late fees of Rs 5,000. This means that in any case, the maximum late fees that can be charged by the Government is Rs 5,000  each return being filed under each Act.
  • As per the IGST Act, for inter-state supplies, the late fee is approximately equal to the sum of fees prescribed under both CGST and SGST Act. Hence, Late fee is:

 

Name of the Act Late fees for every day of delay
Integrated Goods and Services Act, 2017 Rs 200*
The law has fixed a maximum late fees of Rs 5,000. This means that in any case, the maximum late fees that can be charged by the Government is Rs 5,000 each return being filed under the Act.

(* Subject to change via CBEC notifications)

 

  • Nil filers must note late fee applicable as follows:

 

For Nil Return filers
Name of the Act Late fees for every day of delay
CGST Act Rs 50
SGST Act Rs 50
IGST Act Rs 100

 

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 would be:

Rs. 20` per day  3 days = Rs. 60 (Rs. 30 CGST + Rs. 30 SGST)
( ` Subject to change via CBEC notifications)

(*) CBIC has notified reduced amount of late fees for a delay in filing some GST returns for a temporary period as a relief measure for businesses having difficulties using GST portal. It is as follows:

 

 

  • For Intra-state supplies,

 

 

Name of the Act Reduced Late fees for every day of delay
CGST Rs 25
SGST Rs 25
Total Late fees to be paid Rs 50

 

 

  • For Inter-state supplies,

 

 

Name of the Act Reduced Late fees for every day of delay
IGST Rs 50

 

  • Nil return filers must note the reduced late fee applicable as follows:

 

Nil Return
Name of the Act Reduced Late fees for every day of delay
CGST Act Rs 10
SGST Act Rs 10
IGST Act Rs 20

 

FOR GST ANNUAL RETURNS(GSTR-9)

 

Name of the Act Late fees for every day of delay
Central Goods and Services Act, 2017 Rs 100*
Respective State Goods and Services Act, 2017 (or) Union territory Goods and Services Act, 2017 Rs 100*
Total Late fees to be paid Rs 200*
The law has fixed a maximum late fees of an amount calculated at 0.25% of the Turnover for the financial year.

 

Up-to-date List of late fees changes

 

Following are the changes that have been made on the applicability of the late fee law:

Sl no GST returns Return Period Applicability

of Late fee

Link to Notification
1 GSTR-1 July 2017 onwards Reduced Late fee** 4/2018
GSTR-1 if filed between 22nd Dec 2018 to 31st Mar 2019 July 2017 – September 2018 Waived off completely** 75/2018
GSTR-1 for some regions July 2019 Waived off completely for taxpayers in certain districts of the flood-affected States and all districts of J&K 41/2019
GSTR-1 if filed between the period from 19th December 2019 to 10th January 2020 July 2017 – November 2019 Waived off completely 74/2019
GSTR-1 Months March 2020 – April 2020 and Quarter ending 31st March 2020 Waived off completely if filed before the specified dates of June-July 2020. 33/2020
GSTR-1 Months March 2020 – June 2020 and Quarter ending 31st March 2020 and 30th June 2020 Waived off completely if filed before the specified dates of July-August 2020. 53/2020
2 GSTR-3B July 2017 -September 2017 Waived off completely**
Condition to be satisfied:If the date of filing was before 22nd December 2018
28/2017 and 50/2017
October 2017 onwards Reduced Late fee**
Condition to be satisfied:If the date of filing was before 22nd December 2018
64/2017
GSTR-3B was yet to be filed by those who submitted TRAN-1 on GST portal, but could not file it by 27 Dec 2017 October 2017-April 2018 Waived off completely**

Condition to be satisfied:

Such registered persons have filed the declaration in FORM GST TRAN-1 on or before the 10th May 2018 and the return in FORM GSTR-3B for each of such months, on or before the 31st May 2018

22/2018
GSTR-3B submission made but not filed due to a technical glitch October 2017 only Waived off completely** 41/2018
GSTR-3B if filed between 22nd Dec 2018 to 31st Mar 2019 July 2017 -September 2018 Waived off completely** 76/2018
GSTR-3B if filed beyond 31st March 2019 July 2017 -September 2018 Reduced Late fee** 76/2018
GSTR-3B October 2018 onwards Reduced Late fee** 76/2018
GSTR-3B February 2020 – April 2020 Waived off completely if the filed before the staggered specified dates of June-July 2020. 32/2020
GSTR-3B 1. For turnover more than Rs 5 crore
(February 2020 – April 2020)
2. For turnover equal to or less than Rs 5 crore
(February 2020 – July 2020)
3. Pending for months July 2017 – January 2020
1. & 2. Waived off completely if the filed before the staggered specified dates of June-September 2020.
3. The maximum late fee to be capped at Rs 500 per return filed between 1st July 2020 and 30th September 2020, whereas Nil return attracts no late fee.
52/2020
GSTR-3B For turnover more than Rs 5 crore
May 2020 – July 2020
For turnover equal to or less than Rs 5 crore
February 2020 – July 2020
The maximum late fee to be capped at Rs 500 per return filed after the dates given in notification 52/2020 but before 30th September 2020, whereas nil return to not be charged any late fee. 57/2020
3 GSTR-4 July 2017 onwards Reduced Late fee** 73/2017
GSTR-4 filed within due date, but late fee erroneously levied on GST portal October 2017 to December 2017 Waived off completely** 41/2018
GSTR-4 if filed between 22nd Dec 2018 to 31st Mar 2019 July 2017 -September 2018 Waived off completely** 77/2018
GSTR-4 if filed beyond 31st Mar 2019 July 2017 -September 2018 Reduced Late fee** 77/2018
GSTR-4 October 2018 onwards Reduced Late fee** 73/2017
4 GSTR-5 July 2017 onwards Reduced Late fee** 5/2018
5 GSTR-5A July 2017 onwards Reduced Late fee** 6/2018
GSTR-5A Returns for July 2017 onwards filed on or after 7th Mar 2018 Full Late fee applicable^ 13/2018
6 GSTR-6 July 2017 onwards Reduced Late fee**
No late fees for the delay in filing a Nil return
7/2018
GSTR-6 filed between the period 1st January 2018-23rd January 2018 For any tax period prior to January 2018 Completely waived off** 41/2018
GSTR-6 July 2019 Waived off completely for for taxpayers in certain districts of the flood-affected States and all districts of J&K 41/2019

Note: Rest of the returns like GSTR-7, GSTR-8, GSTR-5A or GSTR-9 will have late fees applicable to them as per the Act at normal fee.

 

** If paid before the waiver, this amount will be credited into the electronic cash ledger for use, to pay against the tax liability.

^ The previous notification 6/2018 was cancelled prospectively.


How to deposit Late fees with Government

 

Amount of Late fee applicable will automatically be calculated by the GST portal while submitting the GST returns.

late fees

The Late fee is paid in cash separately for CGST, SGST and IGST in separate electronic cash ledgers. GST return cannot be filed without the payment of the Late fee.

late fees

Late fee for the month includes previous month’s late fee charged due to delay in filing of the return. Also, non-payment or late payment of GST attracts Interest.


Quick View: 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.

 

All about Interest under GST

 

Interest  is applicable 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.

For Further Reading and Understanding: